Dorel reports second quarter results



    - Juvenile performance enhanced by strong Europe results and Euro
    - Customer inventory reductions affects Home Furnishings
    - Recreational/Leisure has another strong quarter

    EXCHANGE TSX: DII.B, DII.A

    MONTREAL, Aug. 2 /CNW Telbec/ - Dorel Industries Inc. (TSX: DII.B DII.A)
today released results for the second quarter ended June 30, 2007. Revenue was
US$459.0 million, up 5.3% from US$435.9 million for the second quarter last
year. Net income for the period was US$10.8 million or US$0.32 per diluted
share compared to US$17.9 million or US$0.55 per diluted share in 2006. These
figures include the costs associated with the previously announced
restructuring activities at both Dorel Europe and Ameriwood, complete details
of which are included within this press release. Excluding these restructuring
costs, adjusted net income for the second quarter was US$19.8 million or
US$0.59 per diluted share versus US$18.1 million or US$0.55 per diluted share
in 2006.
    Revenue for the six months totaled US$914.7 million, compared to
US$886.9 million a year ago. Year-to-date net income was US$38.8 million or
US$1.17 per diluted share, compared to last year's US$42.1 million or
US$1.28 per diluted share. 2007 adjusted six month net income, excluding
restructuring costs, was US$49.1 million or US$1.48 per diluted share. 2006
adjusted net income for the six months ending June 30 was US$42.6 million or
US$1.30 per diluted share.

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

                                            2007          2006        Change%
    -------------------------------------------------------------------------
    Revenue                              459,035       435,914           5.3%
    Adjusted net income(*)                19,760        18,076           9.3%
      Per share - Basic                     0.59          0.55           7.3%
      Per share - Diluted                   0.59          0.55           7.3%
    Net income                            10,845        17,936         -39.5%
      Per share - Basic                     0.32          0.55         -41.8%
      Per share - Diluted                   0.32          0.55         -41.8%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Average number of shares
     outstanding -
     diluted weighted average         33,399,633    32,860,490
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (*)adjusted to exclude after-tax impact of restructuring costs


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

                                            2007          2006        Change%
    -------------------------------------------------------------------------
    Revenue                              914,704       886,938           3.1%
    Adjusted net income(*)                49,076        42,559          15.3%
      Per share - Basic                     1.48          1.30          13.8%
      Per share - Diluted                   1.48          1.30          13.8%
    Net income                            38,784        42,117          -7.9%
      Per share - Basic                     1.17          1.28          -8.6%
      Per share - Diluted                   1.17          1.28          -8.6%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Average number of shares
     outstanding -
     diluted weighted average         33,197,047    32,859,883
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (*)adjusted to exclude after-tax impact of restructuring costs


    "Our earnings improvement over last year's levels is attributed to our
gains at both Dorel Europe and at Pacific Cycle. While we are pleased with
those results, we are disappointed in the earnings at our Home Furnishings
segment. Each of the divisions within this segment has challenges that they
are dealing with. As such, our focus will continue to be on this segment.
Finally, while the juvenile business in the United States is experiencing
lower 2007 sales levels, key new products have been introduced and others will
be launched later in the year that will help improve sales in 2008," commented
Dorel President and CEO, Martin Schwartz.

    Restructuring Costs

    Due to the 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 gross margin", "adjusted net
income" and "adjusted diluted 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.
    The European restructuring that was initiated in the fourth quarter of
2006 continued into 2007 and as such the second quarter includes pre-tax
restructuring charges of US$3.8 million in the Juvenile segment. Year-to-date,
these costs total US$5.9 million. Since the inception of the plan, a total of
US$9.9 million has been expensed out of the total expected cost of
approximately US$15 million. As announced in May of 2007, Ameriwood planned to
suspend operations at its Dowagiac, Michigan plant. This occurred in July and
resulted in the Company recording a second quarter pre-tax restructuring
charge of US$9.7 million, of which US$3.7 million is grouped in cost of sales.
Of the total amount, US$9.5 million represents the write-down of building,
equipment and inventory, a non-cash expense. The remaining US$0.2 million is
mainly for employee severance and will be paid out over the course of the
year. The total cost of the restructuring is expected to be US$11.5 million,
the majority of which will be recorded in the current year.
    For the quarter, the combined after-tax impact of these two restructuring
initiatives is US$8.9 million or US$0.27 per diluted share. Year-to-date the
amount is US$10.3 million or US$0.31 per diluted share. Note that 2006 did
include some residual restructuring costs from the 2005 closure of an RTA
furniture manufacturing plant which for the six month period totaled after-tax
US$0.4 million, or US$0.02 per diluted share. A complete reconciliation of
adjusted earnings to GAAP earnings is attached at the end of this press
release.

    Juvenile Segment

    Led by another robust performance by Dorel Europe and the strong Euro,
second quarter Juvenile segment revenues rose 9.6% to US$233.6 million from
US$213.2 million last year. Adjusted earnings from operations increased 19.7%
to US$23.7 million from US$19.8 million in the prior year. Six month revenue
was up 6.7% to US$478.8 million from last year's US$448.8 million. Adjusted
earnings from operations rose 16.3% to US$57.7 million from US$49.7 million.
    Revenue at Dorel Europe increased 17.5% for the quarter and 21.0%
year-to-date. Organic revenue growth in Europe, excluding the benefit of a
stronger Euro in 2007, was 9.6% in the quarter and 12.0% year-to-date. An
important contributor to the growth in Europe was sales of car seats and
strollers under the Quinny and Maxi brands, with especially strong results in
the United Kingdom, Germany and Eastern Europe.
    Revenue in North America was down 3.0% for the quarter and 7.9%
year-to-date. DJG USA's revenues declined by 7.7% in the quarter and are 13.7%
behind last year's six month sales levels. Offsetting this is Dorel
Distribution Canada which had a solid second quarter. Dorel Australia, the
Company's newest division, was profitable during the quarter and management is
pleased with the progress being made in selling Dorel's complete set of brands
through this division.

    Home Furnishings Segment

    Second quarter Home Furnishings revenue decreased 12.0% to
US$105.6 million from US$120.1 million, while adjusted earnings from
operations increased 16.8% to US$5.7 million from US$4.9 million. Year-to-date
revenues were US$228.2 million, down 10.1% from last year's US$253.8 million.
Adjusted earnings from operations were US$8.1 million, down 18.5% from the
US$9.9 million recorded a year ago. Included in the 2007 second quarter
earnings figure is an insurance recovery of US$2.2 million. This amount is the
final portion of a claim settlement related to the Company's business
interruption insurance policy. The amount received was for additional
production costs incurred due to a lack of board supply following a mid-2006
fire at one of the Company's primary suppliers of particle board.
    A number of the divisions within the segment were adversely affected as
two major customers attempted to lower their on-hand quantities of furniture
inventory. Ameriwood and Dorel Asia were the most affected by these customers
reducing their order levels in the quarter. Despite their lower sales levels,
Ameriwood adjusted gross margins and earnings did improve in the second
quarter and are ahead of last year for the six months ending June 30.
Excluding restructuring costs and the US$2.2 million insurance recovery
recorded in the second quarter, earnings at Ameriwood were flat with last
year, with revenues being lower by almost 10%.
    Due to lower revenues, Dorel Asia's earnings were also lower in the
quarter and year-to-date earnings are approximately 15% below last year. While
Dorel Home Products (DHP) was also moderately affected by the customer
inventory reductions, second quarter sales were almost 50% higher than the
prior year, rebounding from a very slow first quarter. As a result
year-to-date earnings are now behind last year's by 14% as opposed to the
first quarter shortfall of almost 70%. Despite higher sales, earnings at Cosco
Home & Office were affected by a less profitable sales mix. A large proportion
of lower margin items are being sold and continuing legal fees related to its
on-going claim against a major international law firm have hampered earnings.
Year-to-date earnings are US$4.9 million behind last year's figures.

    Recreational/Leisure Segment

    Pacific Cycle's second quarter revenue was up 16.7% to US$119.8 million
from US$102.6 million a year ago. Earnings from operations jumped 132.7% to   
US$13.9 million from US$6.0 million. For the six months, revenue totaled      
US$207.7 million, up 12.7% from US$184.3 million, while earnings from
operations rose 57.6% to US$21.1 million, compared to US$13.4 million last
year. The segment has broadened its product line in 2007, but the majority of
the revenue growth in 2007 is due to improved bicycle sales to both new and
existing customers. A portion of the significant earnings improvement in 2007
is due to the fact that the second quarter of 2006 included a US$3.5 million
reserve that was taken at that time on specific bicycle inventory.
    Bicycle sales were up substantially with strong sell-through at a number
of large retailers. Sales to the independent bicycle dealer network also
increased over the second quarter last year. Response to the new Schwinn
electric bike, first shipped earlier this year, has been better than expected.
Sales of motor scooters are progressing with the dealer network now numbering
around 350 on the way to a forecast of 500 for the year. The ride-on category,
formerly with Juvenile, is doing well with a specific team dedicated to this
product line.

    Taxes

    The Company's year-to-date tax rate is 16.4%, 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. The current quarter tax rate of 35.8%,
which is higher than is typical for Dorel, was due to the re-assessment of
prior year's taxes at certain divisions, as well as adjustments made by other
divisions to bring their tax rates in line with revised full year
expectations. For the balance of the year, the tax rate is expected to return
to less than 20%.

    Cash flow

    Cash flow improved over 2006 with year-to-date cash flow from operations
increasing to US$50.4 million, up from last year's US$44.1 million. This
increase was realized despite lower pre-tax earnings as the majority of the
restructuring costs incurred in 2007 were non-cash items. Year-to-date capital
expenditures, comprising fixed assets, deferred development costs and
intangible assets, total US$15.6 million in 2007, consistent with 2006
spending of US$13.9 million.

    Outlook

    Expectations remain that organic revenue growth will be modest in 2007,
but that earnings improvements, excluding restructuring costs, will outpace
revenue increases. In the Juvenile segment, given the progress at Dorel Europe
and the strength of the Euro, revenue growth is expected to be in the high
single digits. The Juvenile segment adjusted earnings from operations
percentage is expected to remain at year-to-date levels. Due to the furniture
inventory reduction initiatives at some major customers, revenue in the Home
Furnishings segment is now forecast to be less than 2006 levels. The revenue
decline that is now anticipated means adjusted earnings are not expected to
exceed prior year levels for this segment. The pace of both revenue and
earnings increases in the Recreational/Leisure segment, will slow slightly
over the second half. However based on the strong first half, this segment's
revenue and earnings will improve significantly over 2006 levels.

    Conference Call

    Dorel Industries Inc. will hold a conference call to discuss these results
today, August 2, 2007 at 2:00 P.M. Eastern Time. Interested parties can join
the call by dialling 1-800-589-8577. 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
21240579# on your phone. This tape recording will be available on
Thursday, August 2, 2007 as of 4:00 P.M. until 11:59 P.M. on Thursday,
August 9, 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
                                                       June 30,  December 30,
                                                          2007          2006
                                                   ------------  ------------
                                                    (unaudited)     (audited)

    ASSETS
    CURRENT ASSETS
      Cash and cash equivalents                    $    55,992   $    25,925
      Accounts receivable                              300,142       294,731
      Income taxes receivable                            5,618         8,264
      Inventories                                      329,417       326,540
      Prepaid expenses                                   9,871         9,652
      Future income taxes                               35,675        29,046
                                                   ------------  ------------
                                                       736,715       694,158

    PROPERTY, PLANT AND EQUIPMENT                      135,202       142,002
    INTANGIBLE ASSETS                                  263,412       261,966
    GOODWILL                                           507,499       501,356
    OTHER ASSETS                                        28,934        27,924
                                                   ------------  ------------
                                                   $ 1,671,762   $ 1,627,406
                                                   ------------  ------------
                                                   ------------  ------------

    LIABILITIES
    CURRENT LIABILITIES
      Bank indebtedness                            $     4,917   $     3,733
      Accounts payable and accrued liabilities         310,269       326,915
      Income taxes payable                              18,212        10,742
      Dividends payable                                  4,175             -
      Balance of sale payable                                -           605
      Current portion of long-term debt                 62,929         7,832
                                                   ------------  ------------
                                                       400,502       349,827
                                                   ------------  ------------

    LONG-TERM DEBT                                     313,217       375,135
                                                   ------------  ------------
    PENSION & POST-RETIREMENT BENEFIT OBLIGATIONS       20,611        20,370
                                                   ------------  ------------
    FUTURE INCOME TAXES                                 73,858        74,833
                                                   ------------  ------------
    OTHER LONG-TERM LIABILITIES                          8,083         7,719
                                                   ------------  ------------

    SHAREHOLDERS' EQUITY
    CAPITAL STOCK                                      177,271       162,555
    CONTRIBUTED SURPLUS                                  8,425         6,061
    RETAINED EARNINGS                                  597,448       567,020
    ACCUMULATED OTHER COMPREHENSIVE INCOME              72,347        63,886
                                                   ------------  ------------
                                                       855,491       799,522
                                                   ------------  ------------
                                                   $ 1,671,762   $ 1,627,406
                                                   ------------  ------------
                                                   ------------  ------------


                       CONSOLIDATED STATEMENT OF INCOME
         ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS


                          Second Quarter ended          Six Months ended
                       --------------------------  --------------------------
                           June 30,      June 30,      June 30,      June 30,
                              2007          2006          2007          2006
                       ------------  ------------  ------------  ------------
                        (unaudited)   (unaudited)   (unaudited)   (unaudited)


    Sales              $   452,975   $   429,403   $   903,134   $   874,294

    Licensing and
     commission income       6,060         6,511        11,570        12,644
                       ------------  ------------  ------------  ------------

    TOTAL REVENUE          459,035       435,914       914,704       886,938
                       ------------  ------------  ------------  ------------

    EXPENSES
      Cost of sales        349,095       341,741       693,597       691,657
      Selling, general
       and administra-
       tive expenses        65,040        57,684       125,859       110,134
      Depreciation and
       amortization         10,124         9,144        19,668        18,070
      Research and
       development
       costs                 1,880         2,252         4,488         4,533
      Restructuring
       costs                 9,755             -        11,881             -
      Interest on long-
       term debt             6,011         7,486        12,559        15,260
      Other interest           239            60           239           203
                       ------------  ------------  ------------  ------------
                           442,144       418,367       868,291       839,857
                       ------------  ------------  ------------  ------------

    Income before
     income taxes           16,891        17,547        46,413        47,081

      Income taxes           6,046          (389)        7,629         4,964
                       ------------  ------------  ------------  ------------

    NET INCOME         $    10,845   $    17,936   $    38,784   $    42,117
                       ------------  ------------  ------------  ------------
                       ------------  ------------  ------------  ------------

    EARNINGS PER
     SHARE
      Basic            $      0.32   $      0.55   $      1.17   $      1.28
                       ------------  ------------  ------------  ------------
                       ------------  ------------  ------------  ------------
      Diluted          $      0.32   $      0.55   $      1.17   $      1.28
                       ------------  ------------  ------------  ------------
                       ------------  ------------  ------------  ------------

    SHARES OUTSTANDING
      Basic - weighted
       average          33,397,192    32,860,228    33,174,177    32,859,722
      Diluted -
       weighted
       average          33,399,633    32,860,490    33,197,047    32,859,883


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


                          Second Quarter ended          Six Months ended
                       --------------------------  --------------------------
                           June 30,      June 30,      June 30,      June 30,
                              2007          2006          2007          2006
                       ------------  ------------  ------------  ------------
                        (unaudited)   (unaudited)   (unaudited)   (unaudited)


    NET INCOME         $    10,845   $    17,936   $    38,784   $    42,117

    OTHER
     COMPREHENSIVE
     INCOME:
      Net change in
       unrealized
       foreign currency
       gains on trans-
       lation of net
       investments in
       self-sustaining
       foreign opera-
       tions, net of
       tax of nil            4,986        17,091         8,461        24,498
                       ------------  ------------  ------------  ------------

    COMPREHENSIVE
     INCOME            $    15,831   $    35,027   $    47,245   $    66,615
                       ------------  ------------  ------------  ------------
                       ------------  ------------  ------------  ------------


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


                                                        Six Months ended
                                                   --------------------------
                                                       June 30,      June 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                           2,364         1,247
                                                   ------------  ------------
      Balance, end of period                             8,425         4,886
                                                   ------------  ------------

    RETAINED EARNINGS
      Balance, beginning of period                     567,020       478,155
      Net income                                        38,784        42,117
      Dividends on common shares                        (8,352)            -
      Dividends on deferred share units                     (4)            -
                                                   ------------  ------------
      Balance, end of period                           597,448       520,272
                                                   ------------  ------------

    ACCUMULATED OTHER COMPREHENSIVE INCOME
      Balance, beginning of period                      63,886        28,145
      Other comprehensive income                         8,461        24,498
                                                   ------------  ------------
      Balance, end of period                            72,347        52,643
                                                   ------------  ------------

    TOTAL SHAREHOLDERS' EQUITY                     $   855,491   $   740,346
                                                   ------------  ------------
                                                   ------------  ------------


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

                          Second Quarter ended          Six Months ended

                           June 30,      June 30,      June 30,      June 30,
                              2007          2006          2007          2006
                       ------------  ------------  ------------  ------------
                        (unaudited)   (unaudited)   (unaudited)   (unaudited)


    CASH PROVIDED
     BY (USED IN):

    OPERATING
     ACTIVITIES
    Net income         $    10,845   $    17,936   $    38,784   $    42,117
    Items not
     involving
     cash:
      Depreciation
       and amorti-
       zation               10,124         9,144        19,668        18,070
      Amortization
       of deferred
       financing
       costs                    56            38            98           436
      Future income
       taxes                (5,724)       (2,046)       (8,922)         (694)
      Stock based
       compensation          1,536           630         2,360         1,247
      Pension and
       post-retirement
       defined benefit
       plan                    124           361           874           966
      Restructuring
       activities           12,608          (134)       14,722          (400)
      Loss (gain) on
       disposal of
       property, plant
       and equipment          (101)           (6)         (110)           25
                       ------------  ------------  ------------  ------------
                            29,468        25,923        67,474        61,767
    Changes in non-
     cash balances
     related to
     operations:
      Accounts
       receivable           17,874        37,486          (814)       28,351
      Inventories           (7,578)      (32,973)          953       (32,565)
      Prepaid expenses       1,546         1,508          (169)          151
      Accounts payable,
       accruals and
       other liabilities     9,031         3,137       (26,937)       (9,699)
      Income taxes           8,327        (2,450)        9,926        (3,922)
                       ------------  ------------  ------------  ------------
                            29,200         6,708       (17,041)      (17,684)
                       ------------  ------------  ------------  ------------

    CASH PROVIDED
     BY OPERATING
     ACTIVITIES             58,668        32,631        50,433        44,083
                       ------------  ------------  ------------  ------------

    FINANCING ACTIVITIES
      Bank indebtedness       (272)          766         1,025          (939)
      Long-term debt        (7,812)      (27,564)      (14,396)      (18,721)
      Dividends on
       common shares        (4,177)            -        (4,177)            -
      Issuance of
       capital stock             -            17        14,698            34
                       ------------  ------------  ------------  ------------
    CASH USED IN
     FINANCING
     ACTIVITIES            (12,261)      (26,781)       (2,850)      (19,626)
                       ------------  ------------  ------------  ------------

    INVESTING ACTIVITIES
      Acquisition of
       subsidiary
       companies              (594)            -        (2,764)       (4,946)
      Additions to
       property, plant
       and equipment -
       net                  (4,220)       (4,059)       (8,387)       (7,530)
      Deferred
       development
       costs                (4,303)       (2,085)       (6,620)       (3,928)
      Funds held by
       ceding insurer            -           (32)            -           (57)
      Intangible assets       (465)         (874)         (583)       (2,399)
                       ------------  ------------  ------------  ------------
    CASH USED IN
     INVESTING
     ACTIVITIES             (9,582)       (7,050)      (18,354)      (18,860)
                       ------------  ------------  ------------  ------------

      Effect of
       exchange rate
       changes on cash         657           602           838           643
                       ------------  ------------  ------------  ------------

    NET INCREASE
     (DECREASE) IN
     CASH AND CASH
     EQUIVALENTS            37,482          (598)       30,067         6,240

    Cash and cash
     equivalents,
     beginning of
     period                 18,510        19,183        25,925        12,345
                       ------------  ------------  ------------  ------------

    CASH AND CASH
     EQUIVALENTS,
     END OF PERIOD     $    55,992   $    18,585   $    55,992   $    18,585
                       ------------  ------------  ------------  ------------
                       ------------  ------------  ------------  ------------


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

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

    Total Revenue      $   459,035   $   435,914   $   233,607   $   213,191
                       ------------------------------------------------------
    Cost of sales          349,095       341,741       161,946       150,955
    Selling, general
     and administrative     58,379        52,349        38,658        33,642
    Depreciation and
     amortization           10,101         9,120         8,163         7,202
    Research and
     development costs       1,880         2,252         1,122         1,580
    Restructuring costs      9,755             -         3,758             -
                       ------------------------------------------------------
    Earnings from
     Operations             29,825        30,452   $    19,960   $    19,812
                                                   --------------------------
                                                   --------------------------
    Interest                 6,250         7,546
    Corporate expenses       6,684         5,359
    Income taxes             6,046          (389)
                       --------------------------
    Net income         $    10,845   $    17,936
                       --------------------------
                       --------------------------

    Earnings per Share
    ------------------

      Basic            $      0.32   $      0.55
                       ------------  ------------
                       ------------  ------------
      Diluted          $      0.32   $      0.55
                       ------------  ------------
                       ------------  ------------


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

    Earnings from
     Operations as
     above             $    29,825   $    30,452   $    19,960   $    19,812
    Restructuring
     costs                   9,755             -         3,758             -
    Restructuring
     costs in cost
     of sales                3,750           218             -             -
                       ------------------------------------------------------
    Adjusted earnings
     from Operations        43,330        30,670   $    23,718   $    19,812
                                                   --------------------------
                                                   --------------------------
    Interest                 6,250         7,546
    Corporate expenses       6,684         5,359
    Income taxes -
     as above                6,046          (389)
    Income taxes on
     restructuring
     costs                   4,590            78
                       --------------------------
    Adjusted net
     income            $    19,760   $    18,076
                       --------------------------
                       --------------------------

    Adjusted Earnings
     per Share
    -----------------

      Basic            $      0.59   $      0.55
                       ------------  ------------
                       ------------  ------------
      Diluted          $      0.59   $      0.55
                       ------------  ------------
                       ------------  ------------


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

    Total Revenue      $   105,643   $   120,079   $   119,785   $    102,64
                       ------------------------------------------------------
                            92,026       104,140        95,123        86,646
    Cost of sales
    Selling, general         9,312         8,951        10,409         9,756
     and administrative
    Depreciation and         1,601         1,656           337           262
     amortization
    Research and               758           672             -             -
     development costs
    Restructuring costs      5,997             -             -             -
                       ------------------------------------------------------
    Earnings from
     Operations        $    (4,051)  $     4,660   $    13,916   $     5,980
                       ------------------------------------------------------
                       ------------------------------------------------------


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

    Earnings from
     Operations as
     above             $    (4,051)  $     4,660   $    13,916   $     5,980
    Restructuring
      costs                  5,997             -             -             -
    Restructuring
     costs in cost
     of sales                3,750           218             -             -
                       ------------------------------------------------------
    Adjusted earnings
     from Operations   $     5,696   $     4,878   $    13,916   $     5,980
                       ------------------------------------------------------
                       ------------------------------------------------------


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

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

    Total Revenue      $   914,704   $   886,938   $   478,834   $   448,814
                       ------------------------------------------------------
    Cost of sales          693,597       691,657       329,034       318,982
    Selling, general
     and administrative    113,761       100,386        73,453        62,881
    Depreciation and
     amortization           19,624        18,025        15,573        14,203
    Research and
     development costs       4,488         4,533         3,040         3,091
    Restructuring costs     11,881             -         5,884             -
                       ------------------------------------------------------
    Earnings from
     Operations             71,353        72,337   $    51,850   $    49,657
                                                   --------------------------
                                                   --------------------------
    Interest                12,798        15,463
    Corporate expenses      12,142         9,793
    Income taxes             7,629         4,964
                       --------------------------
    Net income         $    38,784   $    42,117
                       --------------------------
                       --------------------------

    Earnings per Share
    ------------------

      Basic            $      1.17   $      1.28
                       ------------  ------------
                       ------------  ------------
      Diluted          $      1.17   $      1.28
                       ------------  ------------
                       ------------  ------------


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

    Earnings from
     Operations as
     above             $    71,353   $    72,337   $    51,850   $    49,657
    Restructuring
     costs                  11,881             -         5,884             -
    Restructuring
     costs in cost
     of sales                3,750           682             -             -
                       ------------------------------------------------------
    Adjusted earnings
     from Operations        86,984        73,019   $    57,734   $    49,657
                                                   --------------------------
                                                   --------------------------

    Interest                12,798        15,463
    Corporate expenses      12,142         9,793
    Income taxes -
     as above                7,629         4,964
    Income taxes on
     restructuring costs     5,339           240
                       --------------------------
    Adjusted net
     income            $    49,076   $    42,559
                       --------------------------
                       --------------------------
    Adjusted Earnings
     per Share
    -----------------

      Basic            $      1.48   $      1.30
                       ------------  ------------
                       ------------  ------------
      Diluted          $      1.48   $      1.30
                       ------------  ------------
                       ------------  ------------


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

    Total Revenue      $   228,196   $   253,806   $   207,674   $   184,318
                       ------------------------------------------------------
    Cost of sales          198,621       221,133       165,942       151,542
    Selling, general
     and administrative     20,563        18,662        19,745        18,843
    Depreciation and
     amortization            3,207         3,305           844           517
    Research and
     development costs       1,448         1,442             -             -
    Restructuring costs      5,997             -             -             -
                       ------------------------------------------------------
    Earnings from
     Operations        $    (1,640)  $     9,264   $    21,143   $    13,416
                       ------------------------------------------------------
                       ------------------------------------------------------


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

    Earnings from
     Operations as
     above             $    (1,640)  $     9,264   $   21,143    $    13,416
    Restructuring
     costs                   5,997             -            -              -
    Restructuring
     costs in cost
     of sales                3,750           682            -              -
                       ------------------------------------------------------
    Adjusted earnings
     from Operations   $     8,107   $     9,946   $   21,143    $    13,416
                       ------------------------------------------------------
                       ------------------------------------------------------
    




For further information:

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

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Dorel Industries Inc.

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