Dorel reports 2006 results



    
    - Fourth Quarter revenue increases over 2005
    - Board of Directors declare first dividend in Dorel history
    - Free cash flow exceeds US$80 million for the year
    - Dorel Europe's juvenile operations being restructured to maintain
      competitive edge
    
    MONTREAL, March 12 /CNW Telbec/ - Dorel Industries Inc. (TSX: DII.B
DII.A; NASDAQ:   DIIB) today announced results for the fourth quarter and year
ended December 30, 2006. Revenue for the fourth quarter was up 4.1% to
US$447.9 million compared to US$430.3 million last year. Net income for the
quarter decreased by 3.9% to US$21.7 million, or US$0.66 per diluted share, in
2006 versus US$22.5 million, or US$0.69 per diluted share in 2005. The 2006
results include pre-tax US$4.0 million of restructuring costs incurred in the
fourth quarter as Dorel Europe initiated a restructuring related to their
production facilities. The fourth quarter of 2005 also included restructuring
costs incurred as part of the Ameriwood plant closure initiated in the third
quarter of 2005. Therefore, adjusted net income for the quarter, excluding
those restructuring costs rose 6.5% to US$24.4 million or US$0.74 per diluted
share compared to adjusted net income of US$22.9 million or US$0.70 per
diluted share in the prior year.
    Full year revenue was US$1.77 billion versus last year's US$1.76 billion.
2006 net income totalled US$88.9 million or US$2.70 per diluted share,
compared to 2005 net earnings of US$91.3 million or US$2.77 per diluted share.
Excluding restructuring costs in both years, adjusted net income was 
US$92.0 million or US$2.80 per diluted share compared to adjusted net income
of US$97.5 million or US$2.96 per diluted share a year ago.
    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 gross margin", "adjusted
earnings from operations", "adjusted pre-tax income" and "adjusted net income"
should be considered as non-GAAP measures. Where applicable the following
segmented results exclude restructuring costs and use the term "adjusted" when
describing these results. A reconciliation of adjusted earnings to GAAP
earnings is attached to the end of this press release.

    Dorel Europe to reduce costs

    In the fourth quarter of 2006, Dorel Europe initiated restructuring
activities which will affect the Juvenile Segment. Significant operational
changes related to the production facility in Telgate, Italy will be
implemented. A similar initiative is in progress regarding the facilities
located in Cholet, France. The plan's objective is to reduce operational costs
through strategic sourcing and manufacturing. These restructuring initiatives
are expected to be completed by 2008 and result in cumulative restructuring
charges totalling between US$11.5 million and US$14.5 million of which 
US$4.0 million has been recorded in 2006.
    "There has been an important change in the market dynamics of the
European juvenile industry," stated Dorel President and CEO, Martin Schwartz.
"There is increasing pressure to lower prices which is requiring the sector to
seek alternate, less expensive sources of production. To maintain its
competitive edge, Dorel Europe must align its operational costs with this new
reality."
    

    -------------------------------------------------------------------------
                       Summary of Financial Highlights
    -------------------------------------------------------------------------
                      Fourth quarter ended December 30
    -------------------------------------------------------------------------
         All figures in thousands of US $, except per share amounts

                                            2006          2005        Change%
    -------------------------------------------------------------------------
    Revenue                              447,930       430,258           4.1%
    Adjusted net income(*)                24,370        22,893           6.5%
      Per share - Basic                     0.74          0.70           5.7%
      Per share - Diluted                   0.74          0.70           5.7%
    Net income                            21,675        22,546          -3.9%
      Per share - Basic                     0.66          0.69          -4.3%
      Per share - Diluted                   0.66          0.69          -4.3%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Average number of shares
     outstanding -
     diluted weighted average         32,861,757    32,859,112
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                       Summary of Financial Highlights
    -------------------------------------------------------------------------
                           Year ended December 30
    -------------------------------------------------------------------------
         All figures in thousands of US $, except per share amounts

                                            2006          2005        Change%
    -------------------------------------------------------------------------
    Revenue                            1,771,168     1,760,865           0.6%
    Adjusted net income(*)                92,025        97,453          -5.6%
      Per share - Basic                     2.80          2.97          -5.7%
      Per share - Diluted                   2.80          2.96          -5.4%
    Net income                            88,865        91,322          -2.7%
      Per share - Basic                     2.70          2.78          -2.8%
      Per share - Diluted                   2.70          2.77          -2.5%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Average number of shares
     outstanding -
     diluted weighted average         32,860,760    32,927,701
    -------------------------------------------------------------------------

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


    Segmented Information

    Juvenile Segment

    Fourth quarter revenue increased 13.1% to US$227.5 million from 
US$201.2 million last year. Adjusted earnings from operations were down 1.1%
to US$23.4 million from US$23.7 million. Full year revenue was up 6.4% to 
US$900.8 million from US$846.9 million in 2005. Adjusted earnings from
operations decreased 1.9% to US$97.6 million from last year's US$99.4 million.
    Full year revenues in North America increased by over 5% whereas in Europe
the increase was near 8%. Foreign exchange rates in 2006 versus 2005 were not
materially different. Therefore the growth was substantially organic. In North
America, strong sales of car seats, high chairs as well as health and safety
aids were the principal reason for the increase. In Europe, gains were also in
the car seat category as well as in strollers, where sales in Northern Europe
in Holland, Germany and the United Kingdom led the increases.
    Full year adjusted gross margins for the segment were 29.5% as compared to
29.4% in 2005. As a result, the increase in sales generated an additional
US$17.2 million in adjusted gross margin dollars versus last year. However,
selling, general and administrative costs increased by US$21.0 million over
2005, the majority of this increase for higher product liability costs,
therefore more than offsetting these gains.

    Home Furnishings Segment

    Revenue for the fourth quarter was US$145.3 million, down 2.4% from last
year's US$148.8 million, while adjusted earnings from operations rose 9.0% to
US$8.9 million from US$8.2 million in 2005. Total 2006 revenue dropped 4.8% to
US$541.9 million versus US$569.3 million the prior year. Adjusted earnings
from operations were down 3.9% to US$31.9. million compared to last year's
US$33.2 million.
    The fourth quarter of 2006 includes a charge of US$4.5 million for anti-
dumping duties imposed upon the Company by the United States Department of
Commerce ("DOC"). These duties pertain to certain metal furniture imported
from China into the United States that was subject to anti-dumping duties
during the period between December 3, 2001 through May 31, 2003. The Company
originally recorded and estimated this liability to be US$2.5 million.
However, in December 2006 the DOC liquidated these transactions at a rate that
was substantially higher than previously expected by the Company. As such, the
Company recorded an expense of US$4.5 million related to the duty on such
imports. In relation to this charge the Company has a pending claim against a
major international law firm. That claim relates to a breach of professional
duty by the law firm for its failure to timely file a request for an
administrative review by the DOC of the duties imposed.
    Revenue increases at Cosco Home & Office and Dorel Asia were offset by
declines at Ameriwood where ready-to-assemble (RTA) furniture sales decreased
by 15%. Futon sales were relatively flat with the prior year. Earnings
increased at all business units with the exception of the futon operations,
which declined US$2.5 million due to lower gross margins, and Cosco Home &
Office due to the anti-dumping duty issue described above. Ameriwood's RTA
furniture operations recorded a US$1.9 million improvement in adjusted
earnings over last year, partially offsetting the futon decline. This
improvement was achieved despite a US$36 million sales decrease. Cosco Home &
Office and Dorel Asia combined to account for the balance of the increase in
earnings.
    Adjusted gross margins for the segment improved to 14.9% in 2006 versus
13.4% in 2005. The principal contributor to this increase were RTA furniture
manufacturing improvements. The fourth quarter improvement at Ameriwood was a
result of efforts undertaken in early 2006 to streamline manufacturing
operations, cut raw material costs, and realign sales efforts directly with
manufacturing capabilities. Earnings grew despite a fourth quarter year-over-
year 20% increase in the cost of particleboard.

    Recreational/Leisure Segment

    Fourth quarter revenue was US$75.2 million, a 6.3% decrease from the
previous year's US$80.2 million. Earnings from operations decreased 11.8% to
US$5.7 million from US$6.5 million. Revenue for the year was off 4.7% to
US$328.4 million from US$344.7 million while earnings from operations
decreased 29.9% to US$24.4 million from US$34.9 million in 2005.
    The revenue decline was due to lower sales of bicycles to the mass
merchant channel. Partially offsetting these declines were increased sales in
the new product categories of swing sets and motor scooters. These two new
product lines combined to add an additional US$15 million in sales to the top
line in 2006. This segment now generates a greater proportion of its revenue
from non-bicycle sales as it continues to develop into a true recreational
company as opposed to strictly a bicycle business.
    Gross margins decreased by 170 basis points in the year. However, of this
amount, 100 basis points were due to a one-time US$3.5 million inventory
write- down in the second quarter of 2006. The remainder of the decrease was
due to a less favourable product mix.

    Dorel to pay dividend for first time

    The Board of Directors of Dorel declared a quarterly dividend of twelve
and one half cents (US$0.125) per share on the Class A Multiple Voting Shares,
Class B Subordinate Voting Shares and Deferred Share Units of the company. The
dividend will be payable on April 23, 2007 to shareholders of record at the
close of business on March 23, 2007. This dividend is the first of an expected
ongoing quarterly dividend policy paying US$0.50 per share per annum.

    Other

    Free cash flow, a non-GAAP financial measure, defined as cash flow from
operations less capital expenditures and changes in funds held by ceding
insurer, was US$83.4 million in 2006 versus US$71.1 million, an improvement of
US$12.3 million. The Company's effective tax rate in 2006 was 11.4% as
compared to 14.6% in 2005. After removing the impact of the restructuring
costs in both years, the tax rate for the year was 12.4% versus 16.3% the
previous year. The majority of the decline is due to greater earnings in lower
tax rate jurisdictions.

    Outlook

    "We have set in motion several initiatives in each of our divisions to
improve results. While growth will be modest in 2007, we expect earnings
improvements to outpace revenue increases. The Juvenile Segment had another
strong year with 6.4% revenue growth, following the 9.1% revenue growth in
2005. Therefore organic revenue growth in 2007 is not expected to be more than
in the low single digits. Intensive product development continues both in
North America and Europe and new revenue opportunities are always being
explored. We are excited about the impact of our Australian acquisition and
look forward to leveraging their abilities with ours to create another avenue
for growth," stated Mr. Schwartz.
    "Our two other segments are expected to grow more rapidly. The Home
Furnishings Segment has seen impressive growth at both Dorel Asia and Cosco
Home & Office and we expect that to continue. Ready-to-assemble furniture
operations continue to be a focus as we redefine operations at Ameriwood. In
2007, Ameriwood will explore sales opportunities that are best suited to their
domestic manufacturing capabilities. We expect to benefit from board prices
that have stabilized in the last several months. Concurrently, Ameriwood will
step up efforts to further reduce operational costs. We expect high single
digit revenue growth in this segment with a continuing turnaround in earnings.
We are pleased that the Recreational/Leisure business has stabilized and we
are seeking additional recreation product platforms. High single digit growth
with better margins and increased earnings are expected," concluded Mr.
Schwartz.

    CONFERENCE CALL

    Dorel Industries Inc. will hold a conference call to discuss these results
tomorrow, March 13th, at 9:00 A.M. Eastern Time. Interested parties can join
the call by dialling 1-800-732-9307. 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 21221325 No. on
your phone. This tape recording will be available on Tuesday, March 13, 2007
as of 11:00 A.M. until 11:59 P.M. on Tuesday, March 20, 2007.

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

    Profile

    Dorel Industries (TSX: DII.B, DII.A; NASDAQ:   DIIB) 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 4,500 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 In Good Care (IGC), 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
                                                   December 30,  December 30,
                                                          2006          2005
                                                    (unaudited)     (audited)

    ASSETS
    CURRENT ASSETS
      Cash and cash equivalents                    $    25,925   $    12,345
      Accounts receivable                              294,731       287,225
      Income taxes receivable                            8,264        14,817
      Inventories                                      326,540       279,265
      Prepaid expenses                                   9,652        10,288
      Funds held by ceding insurer                           -         3,647
      Future income taxes                               29,046        26,060
                                                   ------------  ------------
                                                       694,158       633,647

    PROPERTY, PLANT AND EQUIPMENT                      142,002       144,248
    GOODWILL                                           501,356       481,518
    INTANGIBLE ASSETS                                  261,966       253,245
    OTHER ASSETS                                        27,924        30,057
                                                   ------------  ------------
                                                   $ 1,627,406   $ 1,542,715
                                                   ------------  ------------
                                                   ------------  ------------

    LIABILITIES
    CURRENT LIABILITIES
      Bank indebtedness                            $     3,733   $     4,828
      Accounts payable and accrued liabilities         326,915       305,922
      Income taxes payable                              10,742        18,483
      Balance of sale payable                              605         4,946
      Current portion of long-term debt                  7,832         8,025
                                                   ------------  ------------
                                                       349,827       342,204
                                                   ------------  ------------

    LONG-TERM DEBT                                     375,135       439,634
                                                   ------------  ------------
    PENSION & POST-RETIREMENT BENEFIT OBLIGATIONS       20,370        19,042
                                                   ------------  ------------
    FUTURE INCOME TAXES                                 74,833        63,033
                                                   ------------  ------------
    OTHER LONG-TERM LIABILITIES                          7,719         6,360
                                                   ------------  ------------

    SHAREHOLDERS' EQUITY
    CAPITAL STOCK                                      162,555       162,503
    CONTRIBUTED SURPLUS                                  6,061         3,639
    RETAINED EARNINGS                                  567,020       478,155
    CUMULATIVE TRANSLATION ADJUSTMENT                   63,886        28,145
                                                   ------------  ------------
                                                       799,522       672,442
                                                   ------------  ------------

                                                   $ 1,627,406   $ 1,542,715
                                                   ------------  ------------
                                                   ------------  ------------


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

                            Fourth quarter ended                  Year ended
                       --------------------------  --------------------------
                       December 30,  December 30,  December 30,  December 30,
                              2006          2005          2006          2005
                       ------------  ------------  ------------  ------------
                        (unaudited)   (unaudited)   (unaudited)     (audited)

    Sales              $   442,719   $   426,053   $ 1,748,032   $ 1,740,693

    Licensing and
     commission income       5,211         4,205        23,136        20,172
                       ------------  ------------  ------------  ------------

    TOTAL REVENUE          447,930       430,258     1,771,168     1,760,865
                       ------------  ------------  ------------  ------------

    EXPENSES
      Cost of sales        341,223       339,287     1,363,421     1,367,217
      Selling, general
       and administrative
       expenses             62,614        44,437       228,765       200,159
      Depreciation and
       amortization          9,868        10,448        36,969        38,999
      Research and
       development costs     1,459         1,733         8,169         7,945
      Restructuring costs    3,671           550         3,671         6,982
      Interest on
       long-term debt        6,771         7,861        29,594        31,240
      Other interest            71           338           305         1,410
                       ------------  ------------  ------------  ------------
                           425,677       404,654     1,670,874     1,653,952
                       ------------  ------------  ------------  ------------

    Income before
     income taxes           22,253        25,604       100,274       106,913

      Income taxes             578         3,058        11,409        15,591
                       ------------  ------------  ------------  ------------

    NET INCOME         $    21,675   $    22,546   $    88,865   $    91,322
                       ------------  ------------  ------------  ------------
                       ------------  ------------  ------------  ------------

    EARNINGS PER SHARE
      Basic            $      0.66   $      0.69   $      2.70   $      2.78
                       ------------  ------------  ------------  ------------
                       ------------  ------------  ------------  ------------
      Diluted          $      0.66   $      0.69   $      2.70   $      2.77
                       ------------  ------------  ------------  ------------
                       ------------  ------------  ------------  ------------

    SHARES OUTSTANDING
      Basic -
       weighted
       average          32,861,107    32,858,942    32,860,375    32,836,733
      Diluted -
       weighted
       average          32,861,757    32,859,112    32,860,760    32,927,701


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

                            Fourth quarter ended                  Year ended
                       --------------------------  --------------------------
                       December 30,  December 30,  December 30,  December 30,
                              2006          2005          2006          2005
                       ------------  ------------  ------------  ------------
                        (unaudited)   (unaudited)   (unaudited)     (audited)

    CASH PROVIDED BY
     (USED IN):

    OPERATING
     ACTIVITIES
    Net income         $    21,675   $    22,546   $    88,865   $    91,322
    Items not
     involving cash:
      Depreciation and
       amortization          9,868        10,448        36,969        38,999
      Amortization of
       deferred
       financing costs          38           386           512         1,592
      Future income
       taxes                  (524)        2,109         3,531            43
      Restructuring
       activities            4,347           410         3,840         9,335
      Stock based
       compensation            513           433         2,422         2,602
      Pension and
       post-retirement
       defined benefit
       plan                   (427)       (1,155)        1,368           298
      Exchange gain
       from reductions
       of net invest-
       ments in foreign
       operations             (746)            -        (1,985)            -
      Loss (gain) on
       disposal of
       property, plant
       and equipment           411        (1,041)          601          (680)
                       ------------  ------------  ------------  ------------
                            35,155        34,136       136,123       143,511
    Changes in non-cash
     balances related
     to operations:
      Accounts
       receivable          (16,319)      (21,468)          188       (12,220)
      Inventories           (3,610)       20,246       (39,752)        2,112
      Prepaid expenses          32        (1,413)        1,053         2,095
      Accounts payable
       and accruals
       and other
       liabilities          24,626        25,858        10,810       (36,086)
      Income taxes            (460)         (500)       (1,701)         (544)
                       ------------  ------------  ------------  ------------
                             4,269       22,723       (29,402)      (44,643)
                       ------------  ------------  ------------  ------------

    CASH PROVIDED BY
     OPERATING
     ACTIVITIES             39,424        56,859       106,721        98,868
                       ------------  ------------  ------------  ------------

    FINANCING
     ACTIVITIES
      Bank indebtedness     (3,377)        4,356        (1,136)        3,061
      Long-term debt       (21,397)      (55,369)      (64,787)      (65,713)
      Issuance of
       capital stock             8             -            42         1,417
                       ------------  ------------  ------------  ------------
    CASH USED IN
     FINANCING
     ACTIVITIES            (24,766)      (51,013)      (65,881)      (61,235)
                       ------------  ------------  ------------  ------------

    INVESTING
     ACTIVITIES
      Acquisition of
       subsidiary
       companies                 -             -        (4,946)       (7,440)
      Additions to
       property, plant
       and equipment -
       net                  (1,237)       (3,395)      (14,334)      (19,895)
      Deferred charges      (4,470)       (2,222)      (10,628)       (7,909)
      Funds held by
       ceding insurer            -           (20)        3,647         4,273
      Intangible assets        558          (190)       (2,034)       (4,213)
                       ------------  ------------  ------------  ------------
    CASH USED IN
     INVESTING
     ACTIVITIES             (5,149)       (5,827)      (28,295)      (35,184)
                       ------------  ------------  ------------  ------------

      Effect of
       exchange rate
       changes on cash         380        (1,925)         1,035       (1,392)
                       ------------  ------------  ------------  ------------

    NET INCREASE
     (DECREASE) IN CASH      9,889        (1,906)       13,580         1,057

    Cash and cash
     equivalents,
     beginning of
     period                 16,036        14,251        12,345        11,288
                       ------------  ------------  ------------  ------------

    CASH AND CASH
     EQUIVALENTS, END
     OF PERIOD         $    25,925   $    12,345   $    25,925   $    12,345
                       ------------  ------------  ------------  ------------
                       ------------  ------------  ------------  ------------


                             DOREL INDUSTRIES INC
                 CONSOLIDATED STATEMENT OF RETAINED EARNINGS
                       ALL FIGURES IN THOUSANDS OF US $

                                                           Year ended
                                                   --------------------------
                                                   December 30,  December 30,
                                                          2006          2005
                                                   ------------  ------------
                                                    (unaudited)     (audited)


    BALANCE, BEGINNING OF PERIOD                   $   478,155   $   386,833

    Net income                                          88,865        91,322
                                                   ------------  ------------

    BALANCE, END OF PERIOD                         $   567,020   $   478,155
                                                   ------------  ------------
                                                   ------------  ------------


                            DOREL INDUSTRIES INC.
                       INDUSTRY SEGMENTED INFORMATION
                       FOR THE YEAR ENDED DECEMBER 30
                       ALL FIGURES IN THOUSANDS OF US $


                       ------------------------------------------------------
                                    Total                      Juvenile
                       ------------------------------------------------------
                              2006          2005          2006          2005

    Total Revenue      $ 1,771,168   $ 1,760,865   $   900,833   $   846,856
                       ------------------------------------------------------
    Cost of sales        1,363,421     1,367,217       635,321       598,218
    Selling, general
     and administrative    209,886       181,780       133,108       112,081
    Depreciation and
     amortization           36,876        38,920        29,849        31,615
    Research and
     development costs       8,169         7,945         5,331         5,542
    Restructuring costs      3,671         6,982         3,671             -
                       ------------------------------------------------------
    Earnings from
     Operations            149,145       158,021   $    93,553   $    99,400
                                                  ---------------------------
                                                  ---------------------------
    Interest                29,899        32,650
    Corporate expenses      18,972        18,458
    Income taxes            11,409        15,591
                       --------------------------
    Net income         $    88,865   $    91,322
                       --------------------------
                       --------------------------

    Reconciliation to non-GAAP financial measures
    ---------------------------------------------

    Earnings from
     Operations as
     above             $   149,145   $   158,021   $    93,553   $    99,400
    Restructuring
     costs                   3,671         6,982         3,671             -
    Restructuring
     costs in cost
     of sales                1,069         2,478           329             -
                       ------------------------------------------------------
    Adjusted earnings
     from Operations       153,885       167,481   $    97,553   $    99,400
                                                  ---------------------------
                                                  ---------------------------
    Interest                29,899        32,650
    Corporate expenses      18,972        18,458
    Income taxes
     - as above             11,409        15,591
    Income taxes on
     restructuring
     costs                   1,580         3,329
                       --------------------------
    Adjusted Net
     income            $    92,025   $    97,453
                       --------------------------
                       --------------------------


                       ------------------------------------------------------
                               Home Furnishings       Recreational / Leisure
                       ------------------------------------------------------
                              2006          2005          2006          2005

    Total Revenue      $   541,938   $   569,347   $   328,397   $   344,662
                       ------------------------------------------------------
    Cost of sales          461,671       495,492       266,429       273,507
    Selling, general
     and administrative     40,328        34,410        36,450        35,289
    Depreciation and
     amortization            5,948         6,318         1,079           987
    Research and
     development costs       2,838         2,403             -             -
    Restructuring costs          -         6,982             -             -
                       ------------------------------------------------------
    Earnings from
     Operations        $    31,153   $    23,742   $    24,439   $    34,879
                       ------------------------------------------------------
                       ------------------------------------------------------
    Interest
    Corporate expenses
    Income taxes
    Net income


    Reconciliation to non-GAAP financial measures
    ---------------------------------------------

    Earnings from
     Operations as
     above             $    31,153   $    23,742   $    24,439   $    34,879
    Restructuring
     costs                       -         6,982             -             -
    Restructuring
     costs in cost
     of sales                  740         2,478             -             -
                       ------------------------------------------------------
    Adjusted earnings
     from Operations   $    31,893   $    33,202   $    24,439   $    34,879
                       ------------------------------------------------------
                       ------------------------------------------------------

    Interest
    Corporate expenses
    Income taxes
     - as above
    Income taxes on
     restructuring
     costs
    Adjusted Net
     income


                            DOREL INDUSTRIES INC.
                       INDUSTRY SEGMENTED INFORMATION
                     FOR THE FOURTH QUARTER DECEMBER 30
                       ALL FIGURES IN THOUSANDS OF US $


                       ------------------------------------------------------
                                    Total                      Juvenile
                       ------------------------------------------------------
                              2006          2005          2006          2005

    Total Revenue      $   447,930   $   430,258   $   227,481   $   201,215
                       ------------------------------------------------------
    Cost of sales          341,223       339,287       158,175       142,746
    Selling, general
     and administrative     57,687        40,429        36,855        24,446
    Depreciation and
     amortization            9,844        10,436         8,596         9,178
    Research and
     development costs       1,459         1,733           750         1,153
    Restructuring costs      3,671           550         3,671             -
                       ------------------------------------------------------
    Earnings from
     Operations        $    34,046   $    37,823   $    19,434   $    23,692
                                                  ---------------------------
                                                  ---------------------------
    Interest                 6,842         8,199
    Corporate expenses       4,951         4,020
    Income taxes               578         3,058
                       --------------------------
    Net income         $    21,675   $    22,546
                       --------------------------
                       --------------------------

    Reconciliation to non-GAAP financial measures
    ---------------------------------------------

    Earnings from
     Operations as
     above             $    34,046   $    37,823   $    19,434   $    23,692
    Restructuring
     costs                   3,671           550         3,671             -
    Restructuring
     costs in cost
     of sales                  353           (15)          329             -
                       ------------------------------------------------------
    Adjusted earnings
     from Operations        38,070        38,358   $    23,434   $    23,692
                                                  ---------------------------
                                                  ---------------------------
    Interest                 6,842         8,199
    Corporate expenses       4,951         4,020
    Income taxes
     - as above                578         3,058
    Income taxes on
     restructuring
     costs                   1,329           188
                       --------------------------
    Adjusted Net
     income            $    24,370   $    22,893
                       --------------------------
                       --------------------------


                       ------------------------------------------------------
                               Home Furnishings       Recreational / Leisure
                       ------------------------------------------------------
                              2006          2005          2006          2005

    Total Revenue      $   145,287   $   148,847   $    75,162   $    80,196
                       ------------------------------------------------------
    Cost of sales          122,724       130,743        60,324        65,798
    Selling, general
     and administrative     11,999         8,411         8,833         7,572
    Depreciation and
     amortization              966           922           282           336
    Research and
     development costs         709           580             -             -
    Restructuring costs          -           550             -             -
                       ------------------------------------------------------
    Earnings from
     Operations        $     8,889   $     7,641   $     5,723   $     6,490
                       ------------------------------------------------------
                       ------------------------------------------------------
    Interest
    Corporate expenses
    Income taxes
    Net income


    Reconciliation to non-GAAP financial measures
    ---------------------------------------------

    Earnings from
     Operations as
     above             $     8,889   $     7,641   $     5,723   $     6,490
    Restructuring
     costs                       -           550             -             -
    Restructuring
     costs in cost
     of sales                   24           (15)            -             -
                       ------------------------------------------------------
    Adjusted earnings
     from Operations   $     8,913   $     8,176   $     5,723   $     6,490
                       ------------------------------------------------------
                       ------------------------------------------------------

    Interest
    Corporate expenses
    Income taxes
     - as above
    Income taxes on
     restructuring
     costs
    Adjusted Net
     income
    




For further information:

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

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Dorel Industries Inc.

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