Dorel reports record first half



    
    EXCHANGES
    TSX: DII.B, DII.A

    - Second quarter revenue increases 29%, net income excluding
      restructuring rises 61%
    - All business segments show impressive revenue and earnings improvement
    

    MONTREAL, Aug. 7 /CNW Telbec/ - Dorel Industries Inc. (TSX: DII.B DII.A)
today announced significant year-over-year improvement for the second quarter
ended June 30, 2008 in both revenue and earnings. Revenue rose 29.3% to 
US$593.7 million, from US$459.0 million for the same period a year ago. Net
income for the quarter was US$31.3 million or US$0.94 per diluted share
compared to US$10.8 million or US$0.32 per diluted share in 2007. Figures for
both years include costs associated with previously announced restructuring
activities at Dorel Europe and Ameriwood. Excluding these restructuring costs,
net income for the second quarter of 2008 was US$31.9 million or US$0.96 per
diluted share versus US$19.8 million or US$0.59 per diluted share in 2007.
    Both revenue and net income for the first six months of the year were the
highest in Company history.
    Six month revenue rose 25.7% to US$1.15 billion, compared to           
US$914.7 million last year. Year-to-date net income was US$66.5 million or  
US$1.99 per diluted share, compared to US$38.8 million or US$1.17 per diluted
share in 2007. Excluding restructuring costs, 2008 six month net income was  
US$67.6 million or US$2.03 per diluted share, compared to net income for the
six months ending June 30, 2007 of US$49.1 million or US$1.48 per diluted
share.

    
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                       Summary of Financial Highlights
    -------------------------------------------------------------------------
                        Second Quarters Ended June 30
    -------------------------------------------------------------------------
         All figures in thousands of US $, except per share amounts

                                                2008        2007    Change %
    -------------------------------------------------------------------------
    Revenues                                 593,724     459,035        29.3%
    Net income                                31,347      10,845       189.0%
    Per share - Basic                           0.94        0.32       193.8%
    Per share - Diluted                         0.94        0.32       193.8%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Average number of shares
     outstanding -
     diluted weighted average             33,397,745  33,399,633
    -------------------------------------------------------------------------


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

                                                2008        2007    Change %
    -------------------------------------------------------------------------
    Revenues                               1,149,758     914,704        25.7%
    Net income                                66,480      38,784        71.4%
    Per share - Basic                           1.99        1.17        70.1%
    Per share - Diluted                         1.99        1.17        70.1%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Average number of shares
     outstanding -
     diluted weighted average             33,397,717  33,197,047
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Dorel President and CEO Martin Schwartz stated the most recent results
once again underline that Dorel's combination of varied businesses and price
points are resistant to significant swings in the economy. "Considering the
difficult North American economic environment and the continuing negativity
around consumer spending habits, all three of our business segments have
performed extraordinarily well. People will always require juvenile products,
and higher fuel prices, environmental concerns and a desire to be fit are
increasing the popularity of bicycles. Our home furnishings products feature
exceptional value at reasonable prices as consumers seek the most for their
dollar. Clearly, there is continued strong demand for Dorel's products."
    Mr. Schwartz also said that while input costs have been on the increase,
most have been passed along to retailers. "Both we and our retail customer
base were concerned about the impact of higher retail prices on the consumer.
However, from what we have seen thus far, for the most part, demand at the
retail level has not been hurt by the higher price points now in stores."

    Juvenile

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                        Second Quarters Ended June 30
    -------------------------------------------------------------------------
                             2008                    2007
    -------------------------------------------------------------------------
                           $    % of rev.          $    % of rev.   Change %
    Revenues         291,487                 244,835                    19.1%
    Gross Profit      81,479        28.0%     75,638        30.9%        7.7%
    Earnings from
     operations       29,845        10.2%     22,188         9.1%       34.5%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                           Six Months Ended June 30
    -------------------------------------------------------------------------
                             2008                    2007
    -------------------------------------------------------------------------
                           $    % of rev.          $    % of rev.   Change %
    Revenues         609,065                 509,235                    19.6%
    Gross Profit     176,458        29.0%    157,944        31.1%       11.7%
    Earnings from
     operations       67,074        11.0%     56,513        11.1%       18.7%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Revenue increased in both Europe and North America, with Europe accounting
for approximately 60% of the overall improvement. Second quarter organic sales
growth in Europe was 13.6% and is 12.7% year-to-date. The stronger Euro was
also a contributor to revenue growth, increasing the European growth
percentage to 28.0% for the quarter and 26.6% year-to-date.
    Maxi-Cosi, Quinny and Bebe Confort branded products experienced solid
market share gains in virtually all of the Company's European markets, and
were particularly strong in Germany, France, and the United Kingdom. In North
America, sales increased more than 11% for the quarter and 16.7% year-to-date.
Growth was driven by DJG USA where sales were up across almost all product
categories, particularly in car seats.

    Recreational/Leisure

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                        Second Quarters Ended June 30
    -------------------------------------------------------------------------
                             2008                    2007
    -------------------------------------------------------------------------
                           $    % of rev.          $    % of rev.   Change %
    Revenues(*)      191,715                 119,785                    60.0%
    Gross Profit      46,169        23.9%     24,662        20.6%       87.2%
    Earnings from
     operations       17,686         9.1%     13,916        11.6%       27.1%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (*) 2008 revenue figures excludes Inter-segment sales of US$ 1.7 million


    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                           Six Months Ended June 30
    -------------------------------------------------------------------------
                             2008                    2007
    -------------------------------------------------------------------------
                           $    % of rev.          $    % of rev.   Change %
    Revenues(*)      327,860                 207,674                    57.9%
    Gross Profit      80,796        24.3%     41,732        20.1%       93.6%
    Earnings from
     operations       32,595         9.8%     21,143        10.2%       54.2%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (*) 2008 revenue figures excludes Inter-segment sales of US$ 4.4 million

    The majority of the increase in Recreational/Leisure revenue is due to the
acquisition of Cannondale and SUGOI in February this year. Sales at the
segment's mass merchant customers again increased in the quarter, as demand
for bicycles has risen. Gross margins were up, principally due to the
contribution of higher margins on Cannondale bicycles and SUGOI clothing. Note
that the PTI acquisition in late June 2008 did not contribute any significant
revenues in the quarter.

    Home Furnishings

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                        Second Quarters Ended June 30
    -------------------------------------------------------------------------
                             2008                    2007
    -------------------------------------------------------------------------
                           $    % of rev.          $    % of rev.   Change %
    Revenues(*)      110,522                  94,415                    17.1%
    Gross Profit      15,226        13.5%      9,640        10.1%       57.9%
    Earnings (loss)
     from operations   3,969         3.5%     (6,279)       (6.6%)     163.2%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (*) 2008 revenue figures excludes Inter-segment sales of US$ 2.1 million
        (2007; US$ 1.3 million)

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                           Six Months Ended June 30
    -------------------------------------------------------------------------
                             2008                    2007
    -------------------------------------------------------------------------
                           $    % of rev.          $    % of rev.   Change %
    Revenues(*)      212,833                 197,795                     7.6%
    Gross Profit      27,741        12.8%     21,431        10.7%       29.4%
    Earnings (loss)
     from operations   5,555         2.6%     (6,303)       (3.1%)     188.1%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (*) 2008 revenue figures excludes Inter-segment sales of US$ 4.4 million
        (2007; US$ 3.4 million)

    With the exception of sales of metal folding furniture, all of the
segment's divisions posted improved sales over 2007, both for the quarter and
year-to-date. Sales of ready-to-assemble (RTA) furniture were especially
strong, despite the overall slowdown in the home furnishings retail sector. In
fact, demand for domestically produced product has risen dramatically allowing
the segment's North American factories to run much more efficiently.
    The second quarter of 2007 included a pre-tax restructuring charge of
US 9.7 million, of which US$3.7 million is grouped in cost of sales.
Additionally, the second quarter of 2007 included an insurance recovery
relating to prior periods of US$2.2 million. Excluding these amounts from the
comparative figures, gross margins for the second quarter of 2008 improved by
190 basis points and earnings from operations increased by US$2.8 million to
US$4.0 million from US$1.2 million in the prior year.

    Other

    The Board of Directors of Dorel declared its regular quarterly dividend of
US$0.125 per share on the outstanding number of the Company's Class A Multiple
Voting Shares, Class B Subordinate Voting Shares and Deferred Share Units. The
dividend is payable on September 4, 2008 to shareholders of record as at the
close of business on August 21, 2008.

    Outlook

    The Company's strong first half will allow for very solid 2008 full year
results. However, the pace of earnings improvement over the first six months
of the year will not be repeated in the second half, due principally to
seasonality, specifically in the Recreational / Leisure segment. The majority
of the earnings from this segment occur in the first half of the year,
particularly in the Independent Bicycle Dealer (IBD) business. Both Juvenile
and Home Furnishings earnings are expected to remain strong for the balance of
the year. The Company continues to expect its annual tax rate to be between
15% and 20%.
    As stated at the end of the first quarter, the Company continues to
operate in a rising input cost environment on items such as crude oil and
certain commodities, as well as the increasing cost of goods sourced in China.
As a result, the Company took action on pricing, and for the most part has
been able to offset these increases. However, the effects of further cost
increases at the retail level cannot be determined with any degree of
certainty. Despite the higher resultant retail price points, demand for Dorel
products has remained strong in all three of the Company's segments.

    Conference Call

    Dorel Industries Inc. will hold a conference call to discuss these results
today, August 7, 2008 at 1:00 P.M. Eastern Time. Interested parties can join
the call by dialling 1-800-814-4859. 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 21278988# on your
phone. This tape recording will be available on Thursday, August 7, 2008 as of
3:00 P.M. until 11:59 P.M. on Thursday, August 14, 2008.
    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 Inc. (TSX: DII.B, DII.A) is a world class juvenile
products and bicycle company. Established in 1962, Dorel creates style and
excitement in equal measure to safety, quality and value. The Company's
lifestyle leadership position is pronounced in both its Juvenile and bicycle
categories with an array of trend-setting products. In the Juvenile segment,
Dorel's powerfully branded products such as Quinny, Maxi-Cosi, Safety 1st and
Bébé Confort have shown the way to safety, originality and fashion. Similarly,
its highly popular brands such as Cannondale, Schwinn, GT, Mongoose and SUGOI
have made Dorel a principal player with both independent bicycle dealers and
mass merchants. Dorel's Home Furnishings segment markets a wide assortment of
furniture products, both domestically produced and imported. The Company
exerts relentless innovation and marketing flair across all of its divisions.
Dorel is a $2 billion company with forty-six hundred employees, facilities in
seventeen countries, and sales worldwide.
    US operations include Dorel Juvenile Group USA; the Cannondale Sports
Group; Pacific Cycle; Ameriwood Industries which produces ready-to-assemble
furniture; Altra Furniture; and Cosco Home & Office. In Canada, Dorel operates
Dorel Distribution Canada, Dorel Home Products and SUGOI. Abroad, operations
include Dorel Europe and IGC in Australia, a manufacturer and distributor of
juvenile products. Dorel Asia sources and imports home furnishings products.
Dorel China has eight offices 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. 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 SHEETS
                       ALL FIGURES IN THOUSANDS OF US $

                                                         as at         as at
                                                       June 30,  December 30,
                                                          2008          2007
                                                   ------------  ------------
                                                    (unaudited)     (audited)

    ASSETS
    CURRENT ASSETS
      Cash and cash equivalents                    $    38,834   $    22,513
      Accounts receivable                              408,055       286,924
      Income taxes receivable                           15,352         6,519
      Inventories                                      414,252       322,332
      Prepaid expenses                                  19,003        10,538
      Future income taxes                               38,462        35,228
                                                   ------------  ------------
                                                       933,958       684,054

    PROPERTY, PLANT AND EQUIPMENT                      148,106       140,362
    INTANGIBLE ASSETS                                  284,088       276,383
    GOODWILL                                           643,641       525,235
    OTHER ASSETS                                        39,025        31,870
                                                   ------------  ------------
                                                   $ 2,048,818   $ 1,657,904
                                                   ------------  ------------
                                                   ------------  ------------

    LIABILITIES
    CURRENT LIABILITIES
      Bank indebtedness                            $    10,139   $     5,836
      Accounts payable and accrued liabilities         409,019       325,938
      Income taxes payable                              38,822        25,532
      Future Income Taxes                                   34           136
      Current portion of long-term debt                  1,383        62,906
                                                   ------------  ------------
                                                       459,397       420,348
                                                   ------------  ------------

    LONG-TERM DEBT                                     450,417       192,385
                                                   ------------  ------------
    PENSION & POST-RETIREMENT BENEFIT OBLIGATIONS       21,709        20,942
                                                   ------------  ------------
    FUTURE INCOME TAXES                                 82,179        79,635
                                                   ------------  ------------
    OTHER LONG-TERM LIABILITIES                          8,788         6,848
                                                   ------------  ------------

    SHAREHOLDERS' EQUITY
    CAPITAL STOCK                                      177,271       177,271
                                                   ------------  ------------
    CONTRIBUTED SURPLUS                                 14,253        11,623
                                                   ------------  ------------
    RETAINED EARNINGS                                  700,096       641,981
    ACCUMULATED OTHER COMPREHENSIVE INCOME             134,708       106,871
                                                   ------------  ------------
                                                       834,804       748,852
                                                   ------------  ------------
                                                     1,026,328       937,746
                                                   ------------  ------------
                                                   $ 2,048,818   $ 1,657,904
                                                   ------------  ------------
                                                   ------------  ------------


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

                               Second Quarters Ended      Six Months Ended
                              ----------------------- -----------------------
                                 June 30,    June 30,    June 30,    June 30,
                                    2008        2007        2008        2007
                              ----------- ----------- ----------- -----------
                              (unaudited) (unaudited) (unaudited) (unaudited)

    Sales                     $  590,742  $  452,975  $1,141,775  $  903,134

    Licensing and
     commission income             2,982       6,060       7,983      11,570
                              ----------- ----------- ----------- -----------

    TOTAL REVENUE                593,724     459,035   1,149,758     914,704
                              ----------- ----------- ----------- -----------

    EXPENSES
      Cost of sales              450,850     349,095     864,763     693,597
      Selling, general and
       administrative expenses    81,604      65,040     162,033     125,859
      Depreciation and
       amortization               12,704      10,124      23,790      19,668
      Research and development
       costs                       2,508       1,880       5,221       4,488
      Restructuring costs            802       9,755       1,625      11,881
      Interest on long-term
       debt                        5,332       6,011      10,037      12,559
      Other interest                 619         239         522         239
                              ----------- ----------- ----------- -----------
                                 554,419     442,144   1,067,991     868,291
                              ----------- ----------- ----------- -----------

    Income before income taxes    39,305      16,891      81,767      46,413

    Income taxes                   7,958       6,046      15,287       7,629
                              ----------- ----------- ----------- -----------

    NET INCOME                $   31,347  $   10,845  $   66,480  $   38,784
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    EARNINGS PER SHARE
      Basic                   $     0.94  $     0.32  $     1.99  $     1.17
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------
      Diluted                 $     0.94  $     0.32  $     1.99  $     1.17
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    SHARES OUTSTANDING
      Basic -
       weighted average       33,397,192  33,397,192  33,397,192  33,174,177
      Diluted -
       weighted average       33,397,745  33,399,633  33,397,717  33,197,047


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

                               Second Quarters Ended      Six Months Ended
                              ----------------------- -----------------------
                                 June 30,    June 30,    June 30,    June 30,
                                    2008        2007        2008        2007
                              ----------- ----------- ----------- -----------
                              (unaudited) (unaudited) (unaudited) (unaudited)


    NET INCOME                $   31,347  $   10,845  $   66,480  $   38,784

    OTHER COMPREHENSIVE
     INCOME:
      Net change in
       unrealized foreign
       currency gains (losses)
       on translation of net
       investments in
       self-sustaining
       foreign operations,
       net of tax of nil          (1,842)      4,986      28,221       8,461

      Portion included in
       income as a result
       of reductions in net
       investments in
       self-sustaining
       foreign operations,
       net of tax of nil            (384)          -        (384)          -
                              ----------- ----------- ----------- -----------

    COMPREHENSIVE INCOME      $   29,121  $   15,831  $   94,317  $   47,245
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------


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

                                                          Six Months Ended
                                                   --------------------------
                                                       June 30,      June 30,
                                                          2008          2007
                                                   ------------  ------------
                                                    (unaudited)   (unaudited)
    CAPITAL STOCK
      Balance, beginning of period                 $   177,271   $   162,555
      Issued under stock option plan                         -        14,716
                                                   ------------  ------------
      Balance, end of period                           177,271       177,271
                                                   ------------  ------------

    CONTRIBUTED SURPLUS
      Balance, beginning of period                      11,623         6,061
      Stock-based compensation                           2,630         2,364
                                                   ------------  ------------
      Balance, end of period                            14,253         8,425
                                                   ------------  ------------

    RETAINED EARNINGS
      Balance, beginning of period                     641,981       567,020
      Net income                                        66,480        38,784
      Dividends on common shares                        (8,358)       (8,352)
      Dividends on deferred share units                     (7)           (4)
                                                   ------------  ------------
      Balance, end of period                           700,096       597,448
                                                   ------------  ------------

    ACCUMULATED OTHER COMPREHENSIVE INCOME
      Balance, beginning of period                     106,871        63,886
      Other comprehensive income                        27,837         8,461
                                                   ------------  ------------
      Balance, end of period                           134,708        72,347
                                                   ------------  ------------

    TOTAL SHAREHOLDERS' EQUITY                     $ 1,026,328   $   855,491
                                                   ------------  ------------
                                                   ------------  ------------


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

                               Second Quarters Ended      Six Months Ended
                              ----------------------- -----------------------
                                 June 30,    June 30,    June 30,    June 30,
                                    2008        2007        2008        2007
                              ----------- ----------- ----------- -----------
                              (unaudited) (unaudited) (unaudited) (unaudited)

    CASH PROVIDED BY (USED IN):

    OPERATING ACTIVITIES
    Net income                $   31,347  $   10,845  $   66,480  $   38,784
    Items not involving cash:
      Depreciation and
       amortization               12,704      10,124      23,790      19,668
      Amortization of
       deferred financing
       costs                          47          56         106          98
      Future income taxes          4,331      (5,724)        660      (8,922)
      Stock based compensation     1,149       1,536       2,630       2,360
      Pension and
       post-retirement
       defined benefit plan          789         124         820         874
      Restructuring activities    (1,193)     12,608      (1,877)     14,722
      Exchange gain from
       reduction of net
       investments in foreign
       operations                   (384)          -        (384)          -
      Loss (gain) on disposal
       of property, plant and
       equipment                       4        (101)         24        (110)
                              ----------- ----------- ----------- -----------
                                  48,794      29,468      92,249      67,474
    Net changes in non-cash
     balances related to
     operations:
      Accounts receivable         24,022      17,874     (45,518)       (814)
      Inventories                (25,145)     (7,578)     (8,472)        953
      Prepaid expenses              (903)      1,546        (140)       (169)
      Accounts payable,
       accruals and other
       liabilities                 7,805       9,031      23,615     (26,937)
      Income taxes                (1,079)      8,327       2,138       9,926
                              ----------- ----------- ----------- -----------
                                   4,700      29,200     (28,377)    (17,041)
                              ----------- ----------- ----------- -----------

    CASH PROVIDED BY
     OPERATING ACTIVITIES         53,494      58,668      63,872      50,433
                              ----------- ----------- ----------- -----------

    FINANCING ACTIVITIES
      Bank indebtedness            4,941        (272)      3,931       1,025
      Repayments of
       long-term debt             (6,400)     (7,812)    (61,556)    (14,396)
      Increase of long-term
       debt                        5,782           -     257,957           -
      Dividends on common
       shares                     (4,179)     (4,177)     (8,358)     (4,177)
      Issuance of capital
       stock                           -           -           -      14,698
                              ----------- ----------- ----------- -----------

    CASH PROVIDED BY (USED IN)
     FINANCING ACTIVITIES            144     (12,261)    191,974      (2,850)
                              ----------- ----------- ----------- -----------

    INVESTING ACTIVITIES
      Acquisition of subsidiary
       companies                 (31,270)       (594)   (218,082)     (2,764)
      Additions to property,
      plant and equipment -
       net                        (6,543)     (4,220)    (11,824)     (8,387)
      Deferred development
       costs                      (5,488)     (4,303)     (9,889)     (6,620)
      Intangible assets             (255)       (465)       (488)       (583)
                              ----------- ----------- ----------- -----------
    CASH USED IN INVESTING
     ACTIVITIES                  (43,556)     (9,582)   (240,283)    (18,354)
                              ----------- ----------- ----------- -----------

      Effect of exchange rate
       changes on cash and
       cash equivalents             (826)        657         758         838
                              ----------- ----------- ----------- -----------

    NET INCREASE IN CASH AND
     CASH EQUIVALENTS              9,256      37,482      16,321      30,067

    Cash and cash equivalents,
     beginning of period          29,578      18,510      22,513      25,925
                              ----------- ----------- ----------- -----------

    CASH AND CASH EQUIVALENTS,
     END OF PERIOD            $   38,834  $   55,992  $   38,834  $   55,992
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------


                            DOREL INDUSTRIES INC.
                       INDUSTRY SEGMENTED INFORMATION
                    FOR THE SECOND QUARTERS ENDED JUNE 30
                      ALL FIGURES IN THOUSANDS OF US $

                              -----------------------------------------------
                                        Total                  Juvenile
                              -----------------------------------------------
                                  2008        2007        2008        2007
                              (unaudited) (unaudited) (unaudited) (unaudited)

    Sales to customers        $  593,724  $  459,035  $  291,487  $  244,835
    Inter-segment sales                -           -           -           -
                              -----------------------------------------------
    Total Revenue                593,724     459,035     291,487     244,835
    Cost of sales                450,850     349,095     210,008     169,197
    Selling, general and
     administrative               75,380      58,379      40,316      40,406
    Depreciation and
     amortization                 12,684      10,101       8,801       8,164
    Research and development
     costs                         2,508       1,880       1,720       1,122
    Restructuring costs              802       9,755         797       3,758
                              -----------------------------------------------
    Earnings (loss) from
     Operations                   51,500      29,825  $   29,845  $   22,188
                                                      -----------------------
                                                      -----------------------
    Interest                       5,951       6,250
    Corporate expenses             6,244       6,684
    Income taxes                   7,958       6,046
                              -----------------------
    Net income                $   31,347  $   10,845
                              -----------------------
                              -----------------------
    Earnings per Share
    ------------------
      Basic                   $     0.94  $     0.32
                              ----------- -----------
                              ----------- -----------
      Diluted                 $     0.94  $     0.32
                              ----------- -----------
                              ----------- -----------


                              -----------------------------------------------
                                    Recreational /              Home
                                       Leisure               Furnishings
                              -----------------------------------------------
                                  2008        2007        2008        2007
                              (unaudited) (unaudited) (unaudited) (unaudited)

    Sales to customers        $  191,715  $  119,785  $  110,522  $   94,415
    Inter-segment sales            1,728           -       2,084       1,323
                              -----------------------------------------------
    Total Revenue                193,443     119,785     112,606      95,738
    Cost of sales                147,274      95,123      97,380      86,098
    Selling, general and
     administrative               26,303      10,409       8,761       7,564
    Depreciation and
     amortization                  2,180         337       1,703       1,600
    Research and development
     costs                             -           -         788         758
    Restructuring costs                -           -           5       5,997
                              -----------------------------------------------
    Earnings (loss) from
     Operations               $   17,686  $   13,916  $    3,969  $   (6,279)
                              -----------------------------------------------
                              -----------------------------------------------


                                                      -----------------------
                                                            Eliminations
                                                      -----------------------
                                                          2008        2007
                                                      (unaudited) (unaudited)

    Sales to customers                                $        -  $        -
    Inter-segment sales                                   (3,812)     (1,323)
                                                      -----------------------
    Total Revenue                                         (3,812)     (1,323)
    Cost of sales                                         (3,812)     (1,323)
    Selling, general and
     administrative                                            -           -
    Depreciation and
     amortization                                              -           -
    Research and development
     costs                                                     -           -
    Restructuring costs                                        -           -
                                                      -----------------------
    Earnings (loss) from
     Operations                                       $        -  $        -
                                                      -----------------------
                                                      -----------------------


                            DOREL INDUSTRIES INC.
                       INDUSTRY SEGMENTED INFORMATION
                       FOR THE SIX MONTHS ENDED JUNE 30
                       ALL FIGURES IN THOUSANDS OF US $

                              -----------------------------------------------
                                        Total                  Juvenile
                              -----------------------------------------------
                                  2008        2007        2008        2007
                              (unaudited) (unaudited) (unaudited) (unaudited)

    Sales to customers        $1,149,758  $  914,704  $  609,065  $  509,235
    Inter-segment sales                -           -           -           -
                              -----------------------------------------------
    Total Revenue              1,149,758     914,704     609,065     509,235
    Cost of sales                864,763     693,597     432,607     351,291
    Selling, general and
     administrative              149,176     113,761      87,323      76,932
    Depreciation and
     amortization                 23,749      19,624      16,803      15,575
    Research and development
     costs                         5,221       4,488       3,686       3,040
    Restructuring costs            1,625      11,881       1,572       5,884
                              -----------------------------------------------
    Earnings (loss) from
     Operations                  105,224      71,353  $   67,074  $   56,513
                                                      -----------------------
                                                      -----------------------
    Interest                      10,559      12,798
    Corporate expenses            12,898      12,142
    Income taxes                  15,287       7,629
                              -----------------------
    Net income                $   66,480  $   38,784
                              -----------------------
                              -----------------------
    Earnings per Share
    ------------------
      Basic                   $     1.99  $     1.17
                              ----------- -----------
                              ----------- -----------
      Diluted                 $     1.99  $     1.17
                              ----------- -----------
                              ----------- -----------


                              -----------------------------------------------
                                    Recreational /              Home
                                       Leisure               Furnishings
                              -----------------------------------------------
                                  2008        2007        2008        2007
                              (unaudited) (unaudited) (unaudited) (unaudited)

    Sales to customers        $  327,860  $  207,674  $  212,833  $  197,795
    Inter-segment sales            4,445           -       4,394       3,382
                              -----------------------------------------------
    Total Revenue                332,305     207,674     217,227     201,177
    Cost of sales                251,509     165,942     189,486     179,746
    Selling, general and
     administrative               44,471      19,745      17,382      17,084
    Depreciation and
     amortization                  3,730         844       3,216       3,205
    Research and development
     costs                             -           -       1,535       1,448
    Restructuring costs                -           -          53       5,997
                              -----------------------------------------------
    Earnings (loss) from
     Operations               $   32,595  $   21,143  $    5,555  $   (6,303)
                              -----------------------------------------------
                              -----------------------------------------------


                                                     ------------------------
                                                            Eliminations
                                                     ------------------------
                                                          2008        2007
                                                      (unaudited) (unaudited)

    Sales to customers                                $        -  $        -
    Inter-segment sales                                   (8,839)     (3,382)
                                                      -----------------------
    Total Revenue                                         (8,839)     (3,382)
    Cost of sales                                         (8,839)     (3,382)
    Selling, general and
     administrative                                            -           -
    Depreciation and
     amortization                                              -           -
    Research and development
     costs                                                     -           -
    Restructuring costs                                        -           -
                                                      -----------------------
    Earnings (loss) from
     Operations                                       $        -  $        -
                                                      -----------------------
                                                      -----------------------
    




For further information:

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

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Dorel Industries Inc.

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