Dorel posts solid third quarter



    
    - Adjusted diluted EPS up 7% for the quarter and 11% year-to-date
    - Juvenile growth continues; Q3 sales up 11% adjusted earnings from
      operations jump 24%
    - Year-to-date cash flow from operations increases 41% to US$95 million

    EXCHANGE TSX: DII.B, DII.A
    

    MONTREAL, Oct. 30 /CNW Telbec/ - Dorel Industries Inc. (TSX: DII.B DII.A)
today released results for the third quarter and nine months ended
September 30, 2007. The Company continued to strengthen its position in its
Juvenile and Recreational/Leisure segments and registered significant progress
in Home Furnishings as it pursued the segment's program of cost reductions and
capacity adjustments, particularly in the ready-to-assemble furniture
division.
    Revenue for the quarter was US$440.1 million, up slightly from
US$436.3 million for the third quarter last year. Net income for the three
months was US$26.4 million or US$0.79 per diluted share compared to
US$25.1 million or US$0.76 per diluted share a year ago. Included are the
costs associated with the previously announced restructuring activities at
both Dorel Europe and Ameriwood. Adjusted net income, excluding these costs,
for the third quarter was US$27.0 million or US$0.81 per diluted share versus
US$25.1 million or US$0.76 per diluted share in 2006.
    Revenue for the nine months was US$1.35 billion, up from the
US$1.32 billion a year ago. Year-to-date net income was US$65.1 million or
US$1.96 per diluted share, compared to last year's US$67.2 million or
US$2.04 per diluted share. 2007 adjusted nine month net income was
US$76.1 million or US$2.29 per diluted share, compared to 2006 nine month
adjusted net income of US$67.7 million or US$2.06 per diluted share.

    
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                       Summary of Financial Highlights
    -------------------------------------------------------------------------
                       Third Quarter Ended September 30
    -------------------------------------------------------------------------
         All figures in thousands of US $, except per share amounts

                                            2007          2006      Change %
    -------------------------------------------------------------------------
    Revenue                              440,115       436,300           0.9%
    Adjusted net income(*)                27,021        25,096           7.7%
      Per share - Basic                     0.81          0.76           6.6%
      Per share - Diluted                   0.81          0.76           6.6%
    Net income                            26,360        25,073           5.1%
      Per share - Basic                     0.79          0.76           3.9%
      Per share - Diluted                   0.79          0.76           3.9%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Average number of shares
     outstanding - diluted
     weighted average                 33,398,739    32,861,092
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (*)adjusted to exclude after-tax impact of restructuring costs


    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                       Summary of Financial Highlights
    -------------------------------------------------------------------------
                       Nine Months Ended September 30
    -------------------------------------------------------------------------
         All figures in thousands of US $, except per share amounts

                                            2007          2006      Change %
    -------------------------------------------------------------------------
    Revenue                            1,354,819     1,323,238           2.4%
    Adjusted net income(*)                76,097        67,655          12.5%
      Per share - Basic                     2.29          2.06          11.2%
      Per share - Diluted                   2.29          2.06          11.2%
    Net income                            65,144        67,190          -3.0%
      Per share - Basic                     1.96          2.04          -3.9%
      Per share - Diluted                   1.96          2.04          -3.9%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Average number of shares
     outstanding - diluted
     weighted average                 33,262,464    32,860,268
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (*)adjusted to exclude after-tax impact of restructuring costs


    "We are very pleased with the most recent quarter and are particularly
encouraged that our Juvenile segment is maintaining the overall growth pattern
of the past three years. Since 2004, Juvenile segment revenues have grown each
year at an average of almost 9%. Earnings improvement has been equally
impressive, as illustrated by our 2006 three year compound annual growth rate
of 14%, a figure which we will improve upon in 2007. Dorel has become a strong
global juvenile player and this segment represents the most significant part
of our business. Thus far this year it has accounted for 53% of our revenues
and 66% of our adjusted earnings from operations. Similarly the
Recreational/Leisure segment has grown over last year and has surpassed Home
Furnishings in its contribution to the bottom line," commented Dorel President
and CEO Martin Schwartz.

    Juvenile Segment

    With strong performances from all divisions, third quarter Juvenile
revenues rose 10.6% to US$236.8 million from US$214.0 million last year.
Adjusted earnings from operations increased 24% to US$28.7 million from
US$23.1 million in the prior year. Nine month revenue was up 8% to
US$715.6 million from last year's US$662.8 million. Adjusted earnings from
operations rose 18.7% to US$86.4 million from US$72.8 million.
    Revenue at Dorel Europe increased 13.4% for the quarter and 18.5%
year-to-date. Organic revenue growth in Europe, excluding the benefit of the
stronger Euro, was 5.2% in the quarter and 9.8% year-to-date. Dorel Juvenile
Group (DJG) USA's revenues declined 2% in the quarter and are 10% behind last
year's nine month sales levels. Quarter-over quarter, DJG's revenues are up 6%
as consumers were exposed to new product introductions. Dorel Distribution
Canada continues to have a strong year, running at a growth rate of
approximately 25%. Dorel Australia, the Company's newest division, was
profitable during the quarter and management is pleased with the progress
being made in preparing to sell Dorel's complete set of brands through this
division in 2008.
    "More and more, our juvenile brands and products are being recognized and
appreciated by consumers worldwide. This is allowing us to steadily grow our
business in many markets, particularly in Europe. Our divisions participated
in a number of major juvenile shows during the third quarter and in all
instances reaction to our products was excellent," stated Mr. Schwartz.

    Recreational/Leisure Segment

    Pacific Cycle's third quarter revenue was up 2.3% to US$81.3 million from
US$79.4 million a year ago. Earnings from operations declined 10% to
US$6.0 million from US$6.6 million. For the nine months, revenue totalled
US$288.9 million, up 9.6% from US$263.8 million last year, while earnings from
operations rose 35.2% to US$27.1 million, compared to US$20.1 million last
year.
    The year-to-date progress underlines the benefits of Pacific's strategy of
strong and exclusive branding. The segment has broadened its product lines in
2007; nonetheless the majority of the revenue growth this year is due to an
improvement in its core bicycle business with sales increasing to both new and
existing customers in the mass merchant and independent bicycle dealer (IBD)
network. Additional dealers continue to join the IBD network, an endorsement
of Pacific's decision to dedicate its GT line exclusively to this channel.

    Home Furnishings Segment

    Third quarter year-over-year revenue decreased 14.5% to US$122.1 million
from US$142.8 million. Adjusted earnings from operations for the comparable
periods were down 28.3% to US$9.3 million from US$13.0 million. Year-to-date,
revenues were US$350.3 million, down 11.7% from last year's US$396.7 million.
Adjusted earnings from operations were US$17.5 million, down 24.1% from the
US$23 million recorded a year ago.
    Despite the continuing slowdown in the US housing industry, all Home
Furnishing divisions posted higher sales in the third quarter of 2007 versus
the second. Quarter-over-quarter revenue growth was 15.6% and sequential
adjusted earnings from operations improvement was 64.1%. Other than
Dorel Asia, which posted a moderate earnings decline, all divisions posted
earnings improvements in the third quarter as compared to the second.
Ameriwood's restructuring program is creating meaningful results, contributing
to the segment's profitability improvement.

    Restructuring Costs

    Due to restructuring costs incurred, the Company is including adjusted
earnings figures in this press release that are considered non-GAAP financial
measures, as it believes this permits more meaningful comparisons of its core
business performance between the periods presented. Therefore the terms
"adjusted earnings from operations", "adjusted net income" and "adjusted
earnings per share" should be considered as non-GAAP measures. Where
applicable, the segmented results within this press release exclude
restructuring costs and use the term "adjusted" when describing these results.
    For the third quarter and year-to-date, the combined after-tax impact of
the previously announced restructuring initiatives in Juvenile (Dorel Europe)
and Home Furnishings (Ameriwood) is US$0.7 million or US$0.02 per diluted
share and US$11.0 million or US$0.33 per diluted share respectively. A
complete reconciliation of adjusted earnings to GAAP earnings is attached at
the end of this press release.

    Taxes

    The Company's year-to-date tax rate is 16.5%, within the expected range of
14% to 18%. The Company's tax rate can vary widely from quarter to quarter
given its multi-jurisdictional nature and the impact of changes within certain
jurisdictions in a particular period. For the full year, the tax rate is
expected to remain in the 14% to 18% range.

    Cash flow

    Year-to-date cash flow from operations has increased to $94.9 million, a
41% increase over last year's $67.3 million. This improvement was realized
despite slightly lower after-tax earnings as the majority of the restructuring
costs incurred in 2007 are non-cash items. Year-to-date free cash flow was
$69.7 million compared to $49.1 million in 2006, an improvement of
$20.6 million.

    Outlook

    "Dorel has evolved over the past several years and this is reflected in
the proportion that each of our segments contributes to both revenues and
earnings. In 2003, the year that we acquired Ampafrance, now part of
Dorel Europe, and a year before we entered the Recreational/Leisure segment,
Home Furnishings represented 42% of our revenues and 51% of our earnings from
operations. Year-to-date 2007, these figures for Home Furnishings revenues and
adjusted earnings from operations are 26% and 13% respectively. While we
continually strive to optimize the results of each of our segments, it is
obvious that our recent successes stem from the combined strength of our
Juvenile and Recreational/Leisure segments. It is our belief that to properly
assess Dorel's shareholder value, it is important to focus on which segments
are driving that value," concluded Mr. Schwartz.

    Conference Call

    Dorel Industries Inc. will hold a conference call to discuss these results
today, October 30, 2007 at 2:00 P.M. Eastern Time. Interested parties can join
the call by dialling 1-800-733-7560. The conference call can also be accessed
via live webcast at www.dorel.com , www.newswire.ca or www.q1234.com. If you
are unable to call in at this time, you may access a tape recording of the
meeting by calling 1-877-289-8525 and entering the passcode 21250929# on your
phone. This tape recording will be available on Tuesday, October 30, 2007 as
of 4:00 P.M. until 11:59 P.M. on Tuesday, November 6, 2007.

    Complete financial statements will be available on the Company's website,
www.dorel.com, and will be available through the SEDAR websites.

    Profile

    Dorel Industries (TSX: DII.B, DII.A) is a global consumer products company
engaged in the designing, manufacturing and marketing of a diverse portfolio
of powerful consumer brands, sold through its Juvenile, Home Furnishings, and
Recreational/Leisure segments. Headquartered in Montreal and with significant
operations in the United States and Europe, Dorel employs approximately 4,700
people in 15 countries. Annual sales are US$1.8 billion and are made in over
60 countries worldwide.
    US operations include Dorel Juvenile Group, which markets the Cosco and
Safety 1st brands as well as Eddie Bauer and Disney Baby licensed products;
Ameriwood Industries, which markets ready-to-assemble furniture products under
the Ameriwood, Carina, SystemBuild, Altra Furniture and Ridgewood brands;
Cosco Home & Office, which markets home/office products under the Cosco brand
and Samsonite license as well as home healthcare products under the Cosco
Ability Essentials and Adepta brands; and Pacific Cycle, which markets several
brands including Schwinn, Mongoose, GT, InSTEP, Playsafe and Roadmaster. In
Canada, Dorel operates Dorel Distribution Canada, Ridgewood Industries and
Dorel Home Products. Dorel Europe markets juvenile products throughout Europe,
under the Bébé Confort, Maxi-Cosi, Quinny, Safety 1st, Babidéal, Mon Bébé and
Baby Relax brands. Dorel Asia sources and imports home furnishings products.
Dorel is the majority owner of IGC Dorel Pty Ltd, a manufacturer and
distributor of juvenile products in Australia, whose two principal brands are
Bertini and Mother's Choice. Dorel also has eight offices in China,
headquartered in Shanghai, which oversee the sourcing, engineering and
logistics of the Company's Asian supplier chain.

    Caution Concerning Forward-Looking Statements

    Except for historical information provided herein, this press release may
contain information and statements of a forward-looking nature concerning the
future performance of Dorel Industries Inc. These statements are based on
suppositions and uncertainties as well as on management's best possible
evaluation of future events. The business of the Company and these
forward-looking statements are subject to a number of risks and uncertainties
that could cause actual results to differ from expected results. Important
factors which could cause such differences may include, without excluding
other considerations, increases in raw material costs, particularly for key
input factors such as particle board and resins; increases in ocean freight
container costs; failure of new products to meet demand expectations; changes
to the Company's effective income tax rate as a result of changes in the
anticipated geographic mix of revenues; the impact of price pressures exerted
by competitors, and settlements for product liability cases which exceed the
Company's insurance coverage limits. A description of the above mentioned
items and certain additional risk factors are discussed in the Company's
Annual MD&A and Annual Information Form, filed with the securities regulatory
authorities in Canada and the U.S. The risk factors outlined in the previously
mentioned documents are specifically incorporated herein by reference. The
Company's business, financial condition, or operating results could be
materially adversely affected if any of these risks and uncertainties were to
materialize. Given these risks and uncertainties, investors should not place
undue reliance on forward-looking statements as a prediction of actual
results.


                            DOREL INDUSTRIES INC.
                         CONSOLIDATED BALANCE SHEET
                       ALL FIGURES IN THOUSANDS OF US $

                                                         as at         as at
                                                  September 30,  December 30,
                                                          2007          2006
                                                  ------------- -------------
                                                    (unaudited)     (audited)

    ASSETS
    CURRENT ASSETS
      Cash and cash equivalents                   $     34,860  $     25,925
      Accounts receivable                              288,781       294,731
      Income taxes receivable                           10,713         8,264
      Inventories                                      318,230       326,540
      Prepaid expenses                                   8,259         9,652
      Future income taxes                               30,638        29,046
                                                  ------------- -------------
                                                       691,481       694,158

    PROPERTY, PLANT AND EQUIPMENT                      136,848       142,002
    INTANGIBLE ASSETS                                  272,335       261,966
    GOODWILL                                           516,872       501,356
    OTHER ASSETS                                        30,269        27,924
                                                  ------------- -------------
                                                  $  1,647,805  $  1,627,406
                                                  ------------- -------------
                                                  ------------- -------------

    LIABILITIES
    CURRENT LIABILITIES
      Bank indebtedness                           $      4,227  $      3,733
      Accounts payable and accrued liabilities         290,067       326,915
      Income taxes payable                              19,930        10,742
      Dividends payable                                  4,175             -
      Balance of sale payable                                -           605
      Current portion of long-term debt                 62,679         7,832
                                                  ------------- -------------
                                                       381,078       349,827
                                                  ------------- -------------

    LONG-TERM DEBT                                     262,208       375,135
                                                  ------------- -------------
    PENSION & POST-RETIREMENT BENEFIT OBLIGATIONS       20,798        20,370
                                                  ------------- -------------
    FUTURE INCOME TAXES                                 76,807        74,833
                                                  ------------- -------------
    OTHER LONG-TERM LIABILITIES                          8,375         7,719
                                                  ------------- -------------

    SHAREHOLDERS' EQUITY
    CAPITAL STOCK                                      177,271       162,555
    CONTRIBUTED SURPLUS                                  9,991         6,061
    RETAINED EARNINGS                                  619,633       567,020
    ACCUMULATED OTHER COMPREHENSIVE INCOME              91,644        63,886
                                                  ------------- -------------
                                                       898,539       799,522
                                                  ------------- -------------
                                                  $  1,647,805  $  1,627,406
                                                  ------------- -------------
                                                  ------------- -------------


                            DOREL INDUSTRIES INC.
                       CONSOLIDATED STATEMENT OF INCOME
         ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS

                          Third Quarter Ended          Nine Months Ended
                      --------------------------- ---------------------------
                      September 30, September 30, September 30, September 30,
                              2007          2006          2007          2006
                      ------------- ------------- ------------- -------------
                        (unaudited)   (unaudited)   (unaudited)   (unaudited)

    Sales             $    434,646  $    431,019  $  1,337,780  $  1,305,313

    Licensing and
     commission income       5,469         5,281        17,039        17,925
                      ------------- ------------- ------------- -------------

    TOTAL REVENUE          440,115       436,300     1,354,819     1,323,238
                      ------------- ------------- ------------- -------------

    EXPENSES
      Cost of sales        333,585       330,541     1,027,182     1,022,198
      Selling, general
       and administrative
       expenses             56,904        56,017       182,763       166,151
      Depreciation and
       amortization          9,541         9,031        29,209        27,101
      Research and
       development costs     1,940         2,177         6,428         6,710
      Restructuring costs      875             -        12,756             -
      Interest on
       long-term debt        6,117         7,563        18,676        22,823
      Other interest          (476)           31          (237)          234
                      ------------- ------------- ------------- -------------
                           408,486       405,360     1,276,777     1,245,217
                      ------------- ------------- ------------- -------------

    Income before
     income taxes           31,629        30,940        78,042        78,021

      Income taxes           5,269         5,867        12,898        10,831
                      ------------- ------------- ------------- -------------

    NET INCOME        $     26,360  $     25,073  $     65,144  $     67,190
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------

    EARNINGS PER SHARE
      Basic           $       0.79  $       0.76  $       1.96  $       2.04
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------
      Diluted         $       0.79  $       0.76  $       1.96  $       2.04
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------

    SHARES OUTSTANDING
      Basic - weighted
       average          33,397,192    32,860,942    33,249,058    32,860,132
      Diluted -
       weighted
       average          33,398,739    32,861,092    33,262,464    32,860,268


                             DOREL INDUSTRIES INC
               CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
                       ALL FIGURES IN THOUSANDS OF US $

                          Third Quarter Ended          Nine Months Ended
                      --------------------------- ---------------------------
                      September 30, September 30, September 30, September 30,
                              2007          2006          2007          2006
                      ------------- ------------- ------------- -------------
                        (unaudited)   (unaudited)   (unaudited)   (unaudited)


    NET INCOME        $     26,360  $     25,073  $     65,144  $     67,190

    OTHER
     COMPREHENSIVE
     INCOME:
      Net change in
       unrealized
       foreign
       currency gains
       on translation
       of net
       investments in
       self-sustaining
       foreign
       operations,
       net of tax of
       nil                  19,297        (2,274)       27,758        22,224
                      ------------- ------------- ------------- -------------

    COMPREHENSIVE
     INCOME           $     45,657  $     22,799  $     92,902  $     89,414
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------


                             DOREL INDUSTRIES INC
          CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
                       ALL FIGURES IN THOUSANDS OF US $

                                                       Nine Months Ended
                                                  ---------------------------
                                                  September 30, September 30,
                                                          2007          2006
                                                  ------------- -------------
                                                    (unaudited)   (unaudited)
    CAPITAL STOCK
      Balance, beginning of period                $    162,555  $    162,503
      Issued under stock option plan                    14,716            42
                                                  ------------- -------------
      Balance, end of period                           177,271       162,545
                                                  ------------- -------------

    CONTRIBUTED SURPLUS
      Balance, beginning of period                       6,061         3,639
      Stock-based compensation                           3,930         1,909
                                                  ------------- -------------
      Balance, end of period                             9,991         5,548
                                                  ------------- -------------

    RETAINED EARNINGS
      Balance, beginning of period                     567,020       478,155
      Net income                                        65,144        67,190
      Dividends on common shares                       (12,527)            -
      Dividends on deferred share units                     (4)            -
                                                  ------------- -------------
      Balance, end of period                           619,633       545,345
                                                  ------------- -------------

    ACCUMULATED OTHER COMPREHENSIVE INCOME
      Balance, beginning of period                      63,886        28,145
      Other comprehensive income                        27,758        22,224
                                                  ------------- -------------
      Balance, end of period                            91,644        50,369
                                                  ------------- -------------

    TOTAL SHAREHOLDERS' EQUITY                    $    898,539  $    763,807
                                                  ------------- -------------
                                                  ------------- -------------


                            DOREL INDUSTRIES INC.
                     CONSOLIDATED STATEMENT OF CASH FLOWS
                       ALL FIGURES IN THOUSANDS OF US $

                          Third Quarter Ended          Nine Months Ended
                      --------------------------- ---------------------------
                      September 30, September 30, September 30, September 30,
                              2007          2006          2007          2006
                      ------------- ------------- ------------- -------------
                        (unaudited)   (unaudited)   (unaudited)   (unaudited)

    CASH PROVIDED
     BY (USED IN):

    OPERATING
     ACTIVITIES
    Net income        $     26,360  $     25,073  $     65,144  $     67,190
    Items not
     involving cash:
      Depreciation and
       amortization          9,541         9,031        29,209        27,101
      Amortization of
       deferred
       financing costs          51            38           149           474
      Future income
       taxes                 4,520         4,749        (4,402)        4,055
      Stock based
       compensation          1,566           662         3,926         1,909
      Pension and
       post-retirement
       defined benefit
       plan                    274           829         1,148         1,795
      Restructuring
       activities             (637)         (107)       14,085          (507)
      Exchange gain
       from reduction
       of net
       investments in
       foreign
       operations                -        (1,239)            -        (1,239)
      Loss on disposal
       of property,
       plant and
       equipment               114           165             4           190
                      ------------- ------------- ------------- -------------
                            41,789        39,201       109,263       100,968
    Changes in non-
     cash balances
     related to
     operations:
      Accounts
       receivable           15,373       (11,844)       14,559        16,507
      Inventories           14,538        (3,577)       15,491       (36,142)
      Prepaid expenses       1,986           870         1,817         1,021
      Accounts payable,
       accruals and
       other liabilities   (25,340)       (4,117)      (52,277)      (13,816)
      Income taxes          (3,847)        2,681         6,079        (1,241)
                      ------------- ------------- ------------- -------------
                             2,710       (15,987)      (14,331)      (33,671)
                      ------------- ------------- ------------- -------------

    CASH PROVIDED BY
     OPERATING
     ACTIVITIES             44,499        23,214        94,932        67,297
                      ------------- ------------- ------------- -------------

    FINANCING
     ACTIVITIES
      Bank indebtedness       (867)        3,180           158         2,241
      Long-term debt       (51,868)      (24,669)      (66,264)      (43,390)
      Dividends on
       common shares        (4,172)            -        (8,349)            -
      Issuance of
       capital stock             -             -        14,698            34
                      ------------- ------------- ------------- -------------
    CASH USED IN
     FINANCING
     ACTIVITIES            (56,907)      (21,489)      (59,757)      (41,115)
                      ------------- ------------- ------------- -------------

    INVESTING ACTIVITIES
      Acquisition of
       subsidiary
       companies               (68)            -        (2,832)       (4,946)
      Additions to
       property, plant
       and equipment -
       net                  (5,170)       (5,567)      (13,557)      (13,097)
      Deferred
       development
       costs                (3,757)       (2,230)      (10,377)       (6,158)
      Funds held by
       ceding insurer            -         3,704             -         3,647
      Intangible assets       (737)         (193)       (1,320)       (2,592)
                      ------------- ------------- ------------- -------------
    CASH USED IN
     INVESTING
     ACTIVITIES             (9,732)       (4,286)      (28,086)      (23,146)
                      ------------- ------------- ------------- -------------

      Effect of
       exchange rate
       changes on cash       1,008            12         1,846           655
                      ------------- ------------- ------------- -------------

    NET (DECREASE)
     INCREASE IN CASH
     AND CASH
     EQUIVALENTS           (21,132)       (2,549)        8,935         3,691

    Cash and cash
     equivalents,
     beginning of
     period                 55,992        18,585        25,925        12,345
                      ------------- ------------- ------------- -------------

    CASH AND CASH
     EQUIVALENTS, END
     OF PERIOD        $     34,860  $     16,036  $     34,860  $     16,036
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------


                            DOREL INDUSTRIES INC.
                       INDUSTRY SEGMENTED INFORMATION
             FOR THE THIRD QUARTER ENDED SEPTEMBER 30 (Unaudited)
                       ALL FIGURES IN THOUSANDS OF US $

                      -------------------------------------------------------
                                     Total                     Juvenile
                      -------------------------------------------------------
                              2007          2006          2007          2006

    Total Revenue     $    440,115  $    436,300  $    236,755  $    214,022
                      -------------------------------------------------------
    Cost of sales          333,585       330,541       164,405       149,351
    Selling, general
     and administrative     51,244        51,813        34,562        33,013
    Depreciation and
     amortization            9,518         9,007         7,742         7,050
    Research and
     development costs       1,940         2,177         1,370         1,490
    Restructuring costs        875             -           161             -
                      -------------------------------------------------------
    Earnings from
     Operations             42,953        42,762  $     28,515  $     23,118
                                                  ---------------------------
                                                  ---------------------------
    Interest                 5,641         7,594
    Corporate expenses       5,683         4,228
    Income taxes             5,269         5,867
                      ---------------------------
    Net income        $     26,360  $     25,073
                      ---------------------------
                      ---------------------------

    Earnings per Share
    ------------------
      Basic           $       0.79  $       0.76
                      ------------- -------------
                      ------------- -------------
      Diluted         $       0.79  $       0.76
                      ------------- -------------
                      ------------- -------------


    Reconciliation to
    -----------------
     non-GAAP financial
     ------------------
     measures
     --------
    Earnings from
     Operations as
     above            $     42,953  $     42,762  $     28,515  $     23,118
    Restructuring
     costs                     875             -           161             -
    Restructuring costs
     in cost of sales          172            35             -             -
                      -------------------------------------------------------
    Adjusted earnings
     from Operations        44,000        42,797  $     28,676  $     23,118
                                                  ---------------------------
                                                  ---------------------------
    Interest                 5,641         7,594
    Corporate expenses       5,683         4,228
    Income taxes -
     as above                5,269         5,867
    Income taxes on
     restructuring
     costs                     386            12
                      ---------------------------
    Adjusted net
     income           $     27,021  $     25,096
                      ---------------------------
                      ---------------------------

    Adjusted Earnings
    -----------------
     per Share
     ---------
      Basic           $       0.81  $       0.76
                      ------------- -------------
                      ------------- -------------
      Diluted         $       0.81  $       0.76
                      ------------- -------------
                      ------------- -------------


                      -------------------------------------------------------
                                    Home                     Recreational
                                 Furnishings                  / Leisure
                      -------------------------------------------------------
                              2007          2006          2007          2006

    Total Revenue     $    122,087  $    142,845  $     81,273  $     79,433
                      -------------------------------------------------------
    Cost of sales          103,554       117,813        65,626        63,377
    Selling, general
     and administrative      7,493         9,667         9,189         9,133
    Depreciation and
     amortization            1,297         1,677           479           280
    Research and
     development costs         570           687             -             -
    Restructuring costs        714             -             -             -
                      -------------------------------------------------------
    Earnings from
     Operations       $      8,459  $     13,001  $      5,979  $      6,643
                      -------------------------------------------------------
                      -------------------------------------------------------


    Reconciliation to
    -----------------
     non-GAAP financial
     ------------------
     measures
     --------
    Earnings from
     Operations as
     above            $      8,459  $     13,001  $      5,979  $      6,643
    Restructuring
     costs                     714             -             -             -
    Restructuring costs
     in cost of sales          172            35             -             -
                      -------------------------------------------------------
    Adjusted earnings
     from Operations  $      9,345  $     13,036  $      5,979  $      6,643
                      -------------------------------------------------------
                      -------------------------------------------------------


                            DOREL INDUSTRIES INC.
                       INDUSTRY SEGMENTED INFORMATION
             FOR THE NINE MONTHS ENDED SEPTEMBER 30 (Unaudited)
                       ALL FIGURES IN THOUSANDS OF US $

                      -------------------------------------------------------
                                     Total                     Juvenile
                      -------------------------------------------------------
                              2007          2006          2007          2006

    Total Revenue     $  1,354,819  $  1,323,238  $    715,589  $    662,836
                      -------------------------------------------------------
    Cost of sales        1,027,182     1,022,198       493,439       468,333
    Selling, general
     and administrative    165,005       152,199       108,015        95,894
    Depreciation and
     amortization           29,142        27,032        23,315        21,253
    Research and
     development costs       6,428         6,710         4,410         4,581
    Restructuring costs     12,756             -         6,045             -
                      -------------------------------------------------------
    Earnings from
     Operations            114,306       115,099  $     80,365  $     72,775
                                                  ---------------------------
                                                  ---------------------------
    Interest                18,439        23,057
    Corporate expenses      17,825        14,021
    Income taxes            12,898        10,831
                      ---------------------------
    Net income        $     65,144  $     67,190
                      ---------------------------
                      ---------------------------

    Earnings per Share
    ------------------
      Basic           $       1.96  $       2.04
                      ------------- -------------
                      ------------- -------------
      Diluted         $       1.96  $       2.04
                      ------------- -------------
                      ------------- -------------


    Reconciliation to
    -----------------
     non-GAAP financial
     ------------------
     measures
     --------
    Earnings from
     Operations as
     above            $    114,306  $    115,099  $     80,365  $     72,775
    Restructuring
     costs                  12,756             -         6,045             -
    Restructuring costs
     in cost of sales        3,922           717             -             -
                      -------------------------------------------------------
    Adjusted earnings
     from Operations       130,984       115,816  $     86,410  $     72,775
                                                  ---------------------------
                                                  ---------------------------
    Interest                18,439        23,057
    Corporate expenses      17,825        14,021
    Income taxes -
     as above               12,898        10,831
    Income taxes on
     restructuring
     costs                   5,725           252
                      ---------------------------
    Adjusted net
     income           $     76,097  $     67,655
                      ---------------------------
                      ---------------------------

    Adjusted Earnings
    -----------------
     per Share
     ---------
      Basic           $       2.29  $       2.06
                      ------------- -------------
                      ------------- -------------
      Diluted         $       2.29  $       2.06
                      ------------- -------------
                      ------------- -------------


                      -------------------------------------------------------
                                    Home                     Recreational
                                 Furnishings                  / Leisure
                      -------------------------------------------------------
                              2007          2006          2007          2006

    Total Revenue     $    350,283  $    396,651  $    288,947  $    263,751
                      -------------------------------------------------------
    Cost of sales          302,175       338,946       231,568       214,919
    Selling, general
     and administrative     28,056        28,329        28,934        27,976
    Depreciation and
     amortization            4,504         4,982         1,323           797
    Research and
     development costs       2,018         2,129             -             -
    Restructuring costs      6,711             -             -             -
                      -------------------------------------------------------
    Earnings from
     Operations       $      6,819  $     22,265  $     27,122  $     20,059
                      -------------------------------------------------------
                      -------------------------------------------------------


    Reconciliation to
    -----------------
     non-GAAP financial
     ------------------
     measures
     --------
    Earnings from
     Operations as
     above            $      6,819  $     22,265  $     27,122  $     20,059
    Restructuring
     costs                   6,711             -             -             -
    Restructuring costs
     in cost of sales        3,922           717             -             -
                      -------------------------------------------------------
    Adjusted earnings
     from Operations  $     17,452  $     22,982  $     27,122  $     20,059
                      -------------------------------------------------------
                      -------------------------------------------------------
    




For further information:

For further information: MaisonBrison: Rick Leckner, (514) 731-0000;
Dorel Industries Inc.: Jeffrey Schwartz, (514) 934-3034

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