Dorel announces improved third quarter results

                Dorel announces improved third quarter results

PR Newswire

MONTREAL, Nov. 8, 2012

Juvenile leads the way

  *Juvenile segment operating profit improves significantly
  *Recreational/Leisure continues to build on its positive trend
  *EPS of US$0.63 per diluted share compared to US$0.46 excluding tax benefit
    in 2011

MONTREAL, Nov.  8, 2012  /PRNewswire/  - Dorel  Industries Inc.  (TSX:  DII.B, 
DII.A) today announced  results for the  third quarter and  nine months  ended 
September 30, 2012. Revenue for the quarter increased by US$37.5 million,  or 
6.5%, to US$613.3 million  from US$575.8 million a  year ago. Organic  revenue 
growth for the quarter was  approximately 5%. Pre-tax income increased  69.5% 
to US$24.4 million compared to US$14.4 million last year. Net income for  the 
period was US$20.0 million  or US$0.63 per diluted  share compared to  US$23.1 
million or  US$0.71 per  diluted share  in  2011. The  third quarter  of  2011 
included a  one-time US$8.3  million income  tax recovery  and excluding  this 
benefit, earnings per diluted  share were US$0.63 in  the quarter compared  to 
US$0.46 a year ago.

Total revenue for the nine  months was up 3.6%  to US$1.9 billion from  US$1.8 
billion in  the  prior year.  Year-to-date  pre-tax income  has  increased  to 
US$94.8 million  from US$82.5  million,  a 15%  improvement. Net  income  was 
US$79.5 million or US$2.48 per diluted  share, compared to US$77.2 million  or 
US$2.36 per diluted share for the year-to-date in 2011.

"Our core businesses  are moving in  the right direction  despite a  difficult 
economy," said Dorel  President and CEO  Martin Schwartz. "Operating  profits 
increased significantly in  our Juvenile  segment thanks  largely to  tangible 
progress at Dorel Juvenile  Group (DJG) USA and  a solid performance at  Dorel 
Europe, despite a year-over-year drop in  the value of the Euro. Dorel  Chile 
once again was an important contributor to the quarter, underlining the  value 
of   the   partnership   we   established    there   almost   a   year    ago. 
Recreational/Leisure did  well, particularly  in the  mass merchant  channel. 
Home  Furnishings   sales  were   down  slightly   due  to   a  reduction   in 
ready-to-assemble furniture sales,  partly offset by  increases in futons  and 
upholstered furniture. The  segment's Internet sales  maintained their  steady 
growth trend," commented Mr. Schwartz.


                   Summary of Financial Highlights
                  Third Quarters Ended September 30
     All figures in thousands of US $, except per share amounts
                                            2012       2011 Change %
Total revenue                             613,295    575,828     6.5%
Net income                                 19,986     23,074  (13.4%)
          Per share - basic                 0.64       0.71   (9.9%)
          Per share - diluted               0.63       0.71  (11.3%)
Average number of shares outstanding -
diluted weighted average               31,878,391 32,613,976        
                                                                 
                                                                 
                   Summary of Financial Highlights
                   Nine Months Ended September 30
     All figures in thousands of US $, except per share amounts
                                            2012       2011 Change %
Total revenue                           1,868,106  1,802,621     3.6%
Net income                                 79,494     77,231     2.9%
          Per share - basic                 2.51       2.37     5.9%
          Per share - diluted               2.48       2.36     5.1%
Average number of shares outstanding -
diluted weighted average               32,041,423 32,779,635        



Juvenile Segment


              Third Quarters Ended September 30
                      2012              2011           
                   $    % of rev.    $    % of rev. Change %
Total revenue    249,126          227,080              9.7%
Gross profit      69,080     27.7%  50,089     22.1%    37.9%
Operating profit  16,889      6.8%   4,934      2.2%   242.3%
                                                       
                                                       
               Nine Months Ended September 30
                      2012              2011           
                   $    % of rev.    $    % of rev. Change %
Total revenue    773,406          740,665              4.4%
Gross profit     212,838     27.5% 183,445     24.8%    16.0%
Operating profit  54,672      7.1%  43,461      5.9%    25.8%



After adjusting for the  impact of varying exchange  rates and new  businesses 
acquired, Juvenile segment organic revenue  increased approximately 4% in  the 
third  quarter  and  is  flat  for  the  year-to-date.  This  was  the  second 
consecutive quarter of organic sales growth for the segment after a decline in
the first  quarter. Operating  profit  was US$16.9  million, an  increase  of 
US$12.0 million from  US$4.9 million in  2011. Year-to-date, operating  profit 
was US$54.7 million, up from last year's US$43.5 million.

A positive contributor to the operating profit was the impact of higher  gross 
margins earned by  Dorel Chile which  operates retail stores  that generate  a 
higher gross profit.  The segment's two  main operating units,  DJG and  Dorel 
Europe, both posted improved gross margins due mainly to more stable costs and
a better sales mix. Operating expenses  remained in line with the prior  year 
with Dorel Chile accounting for the majority of the dollar increase.

Toward the  end of  the quarter,  Dorel  announced the  acquisition of  a  70% 
interest in two juvenile  product businesses in  Colombia and Panama,  further 
increasing its presence  in Latin  America. The  acquisition expands  Dorel's 
ownership of the popular Infanti brand, to which the Company already owns  the 
rights in Chile, Bolivia, Peru and Argentina.

Recreational/Leisure Segment

                                                       
              Third Quarters Ended September 30
                      2012              2011               
                   $    % of rev.    $    % of rev. Change %
Total revenue    228,953          209,823              9.1%
Gross profit      55,295     24.2%  47,055     22.4%    17.5%
Operating profit  12,516      5.5%  10,008      4.8%    25.1%
                                                       
                                                       
               Nine Months Ended September 30
                      2012              2011               
                   $    % of rev.    $    % of rev. Change %
Total revenue    701,782          659,344              6.4%
Gross profit     176,918     25.2% 158,642     24.1%    11.5%
Operating profit  55,502      7.9%  49,053      7.4%    13.1%



The third quarter's sales increase of  9.1% was driven primarily by  shipments 
to the  mass market  channel. For  the year-to-date,  both the  IBD and  mass 
market channels have increased sales. Excluding the impact of foreign exchange
variations on the  segment's non-US  based businesses,  the segment's  organic 
revenue increase was approximately 11% for the quarter and 8% year-to-date.

Operating profit for the segment improved  US$2.5 million, or 25%, to  US$12.5 
million. For the nine months, operating profit was up US$6.4 million or  13.1% 
to US$55.5.  Contributing  to the  improvement  in operating  profit  was  the 
on-going turnaround  at SUGOI.  Last  year the  apparel division  lost  US$2.2 
million during the  third quarter,  whereas the changes  implemented thus  far 
this year resulted in a breakeven situation during the most recent quarter.

The segment's divisions were front and centre at the year's two most important
bike shows, held in Europe and in the U.S. Several new Cannondale models were
launched for 2013  and Cannondale  was the  recipient of  three Eurobike  2012 
awards. Cycling Sports Group (CSG) used the U.S. show to announce the  launch 
of the  new  GURU  Experience,  an  advanced  personalized  bike  fitting  and 
consultative  retail  system  that  will  help  consumers  reach  their   peak 
performance and will further position CSG as the go-to bike company.

Home Furnishings Segment

                                                       
              Third Quarters Ended September 30
                      2012              2011               
                   $    % of rev.    $    % of rev. Change %
Total revenue    135,216          138,925            (2.7%)
Gross profit      15,184     11.2%  15,709     11.3%   (3.3%)
Operating profit   5,813      4.3%   6,748      4.9%  (13.9%)
                                                       
                                                       
               Nine Months Ended September 30
                      2012              2011               
                   $    % of rev.    $    % of rev. Change %
Total revenue    392,918          402,612            (2.4%)
Gross profit      47,488     12.1%  48,498     12.0%   (2.1%)
Operating profit  18,298      4.7%  20,765      5.2%  (11.9%)



Home Furnishings third quarter revenues decreased by 2.7% to US$135.2 million,
while operating profit  dipped 13.9%  to US$5.8  million. For  the first  nine 
months, revenues decreased 2.4% to US$392.9 million. Operating profit for  the 
first nine months of  the year was US$18.3  million versus US$20.8 million  in 
2011, a  decrease of  11.9%, as  a result  of decreased  revenues and  a  less 
profitable sales mix.

Gross margins for the quarter were 11.2%, consistent with the 11.3% recorded a
year ago. Similarly,  for the  first nine  months, gross  margins were  12.1%, 
close to the 12.0% in 2011. While benefitting from a stable cost  environment, 
offsetting this  was a  less  profitable sales  mix.  Internet sales  for  the 
segment continued  their upward  progression, maintaining  the positive  trend 
established over the past several quarters.

Other
Cash flow from operating activities  was US$53.8 million compared to  US$105.8 
million last year. The major reason was an increase in inventory from US$442.4
million at year  end to  US$528.7 million as  at September  30, 2012.  Several 
factors  contributed  to   this  situation  including   higher  inventory   in 
Recreational / Leisure to ensure fulfillment of fourth quarter holiday orders,
the earlier transition to the new model year bikes than in 2011 as well as the
addition of the new Colombia and Panama businesses. Inventories will decrease
significantly in the  fourth quarter  but will  be above  last year's  closing 
figure.

Quarterly dividend
The Board of  Directors of Dorel  declared its regular  quarterly dividend  of 
US$0.30 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 December  6, 2012 to shareholders  of record as at  the 
close of business on November 22, 2012.

Outlook
"The total year-to-date operating profit  of our three segments has  increased 
by US$15.2 million  or 13.4% versus  the prior year.  We expect this  positive 
trend to continue through the rest of 2012, led by revenue and earnings growth
in Juvenile and Recreational / Leisure. Partially offsetting these gains will
be lower operating  profit in Home  Furnishings as that  segment continues  to 
face a challenging retail  environment. While the other  two segments face  a 
similar environment, they are well positioned in their various markets to meet
these challenges and it is anticipated these segments will better last  year's 
results," commented Mr. Schwartz.

"We are  expecting input  costs in  the fourth  quarter to  remain stable  and 
assuming no significant fluctuation in  exchange rates, we are confident  that 
the fourth quarter  operating profit of  our three segments  will exceed  last 
year.  As  a  reminder,  in  last   year's  fourth  quarter  we  recorded   a 
non-operational gain of US$11.1 million  which reduced our corporate  expenses 
and this will not re-occur this year," concluded Mr. Schwartz.

Conference Call
Dorel Industries Inc.  will hold a  conference call to  discuss these  results 
today, November 8, 2012 at 1:00 P.M. Eastern Time. Interested parties can join
the call by dialling 1-888-231-8191. The conference call can also be  accessed 
via live webcast  at www.dorel.com or  www.newswire.ca. If you  are unable  to 
call in at this  time, you may  access a recording of  the meeting by  calling 
1-855-859-2056 and  entering  the  passcode  37306010#  on  your  phone.  This 
recording will be  available on  Thursday, November  8, 2012  as of  4:00P.M. 
until 11:59 P.M. on Thursday, November 15, 2012.

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. Now in its 50^th year, 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. Dorel's powerfully branded  products 
include Safety 1^st, Quinny, Cosco, Maxi-Cosi and Bébé Confort in Juvenile, as
well  as  Cannondale,   Schwinn,  GT,   Mongoose,  IronHorse   and  SUGOI   in 
Recreational/Leisure.  Dorel's  Home  Furnishings  segment  markets  a   wide 
assortment of  both domestically  produced  and imported  furniture  products, 
principally within North America. Dorel has annual sales of US$2.4 billion and
employs 5,000 people in facilities located in twenty-four countries worldwide.

Caution Regarding Forward Looking Statements
Certain  statements   included   in   this  press   release   may   constitute 
"forward-looking  statements"  within  the  meaning  of  applicable   Canadian 
securities legislation.  Except as  may be  required by  Canadian  securities 
laws, Dorel  does  not  undertake  any obligation  to  update  or  revise  any 
forward-looking statements, whether  as a  result of  new information,  future 
events or otherwise.  Forward-looking statements,  by their  very nature,  are 
subject  to  numerous  risks  and  uncertainties  and  are  based  on  several 
assumptions which  give rise  to  the possibility  that actual  results  could 
differ materially from Dorel's  expectations expressed in  or implied by  such 
forward-looking  statements  and   that  the   objectives,  plans,   strategic 
priorities and business outlook may not be achieved. As a result, Dorel cannot
guarantee that any forward-looking statement will materialize. Forward-looking
statements are  provided in  this  press release  for  the purpose  of  giving 
information about  Management's current  expectations and  plans and  allowing 
investors and  others  to get  a  better understanding  of  Dorel's  operating 
environment. However, readers are cautioned that it may not be appropriate  to 
use such forward-looking statements for any other purpose.

Forward-looking statements made in this press release are based on a number of
assumptions that  Dorel  believed were  reasonable  on  the day  it  made  the 
forward-looking statements. Factors that could cause actual results to  differ 
materially from  the Company's  expectations expressed  in or  implied by  the 
forward-looking statements include: general  economic conditions; changes  in 
product costs and supply channel; foreign currency fluctuations; customer  and 
credit risk including the concentration of revenues with few customers;  costs 
associated with product liability;  changes in income  tax legislation or  the 
interpretation or application of those rules; the continued ability to develop
products and  support  brand names;  changes  in the  regulatory  environment; 
continued access  to capital  resources and  the related  costs of  borrowing; 
changes in  assumptions in  the  valuation of  goodwill and  other  intangible 
assets and subject  to dividends  being declared  by the  Board of  Directors, 
there can be  no certainty that  Dorel's Dividend Policy  will be  maintained. 
These and  other  risk factors  that  could  cause actual  results  to  differ 
materially from expectations  expressed in or  implied by the  forward-looking 
statements are discussed in  Dorel's annual MD&A  and Annual Information  Form 
filed with the applicable Canadian securities regulatory authorities. The risk
factors outlined  in  the  previously  mentioned  documents  are  specifically 
incorporated herein by reference.

Dorel cautions readers that  the risks described above  are not the only  ones 
that could impact it. Additional  risks and uncertainties not currently  known 
to Dorel  or that  Dorel currently  deems to  be immaterial  may also  have  a 
material adverse effect  on our  business, financial condition  or results  of 
operations. Given these risks and  uncertainties, investors should not  place 
undue reliance  on  forward-looking  statements  as  a  prediction  of  actual 
results.

Except as otherwise indicated, forward-looking  statements do not reflect  the 
potential impact  of  any non-recurring  or  other  unusual items  or  of  any 
dispositions, mergers,  acquisitions,  other business  combinations  or  other 
transactions that may be  announced or that may  occur after the date  hereof. 
The financial impact of these transactions and non-recurring and other unusual
items can be  complex and depends  on the  facts particular to  each of  them. 
Dorel therefore cannot describe the expected impact in a meaningful way or  in 
the same way Dorel presents known risks affecting the business.



                            DOREL INDUSTRIES INC.
       CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
                       ALL FIGURES IN THOUSANDS OF US $
                                                                        
                                                      as at          as at
                                                 September 30,  December 30,
                                                     2012           2011
                                                   (unaudited)   (unaudited)
                                                                        
ASSETS                                                                   
CURRENT ASSETS                                                           
 Cash and cash equivalents                        $     31,906   $    29,764
 Trade and other receivables                          437,495      403,664
 Inventories                                          528,745      442,409
 Other financial assets                                 3,297        9,867
 Income taxes receivable                               11,981       17,811
 Prepaid expenses                                      24,096       21,858
                                                    1,037,520      925,373
                                                                        
NON-CURRENT ASSETS                                                       
 Property, plant and equipment                        155,848      158,363
 Intangible assets                                    417,470      411,171
 Goodwill                                             575,091      568,849
 Other financial assets                                   898           -
 Deferred tax assets                                   25,972       31,096
 Other assets                                           1,632        1,717
                                                    1,176,911    1,171,196
                                                  $  2,214,431   $ 2,096,569
                                                                        
LIABILITIES                                                              
CURRENT LIABILITIES                                                      
 Bank indebtedness                                $     10,800   $    20,130
 Trade and other payables                             350,373      323,552
 Other financial liabilities                            5,279       13,065
 Income taxes payable                                   1,502        2,315
 Long-term debt                                           468       17,279
 Provisions                                            36,016       37,096
                                                      404,438      413,437
                                                                        
NON-CURRENT LIABILITIES                                                  
 Long-term debt                                       360,844      298,160
 Pension and post-retirement benefit obligations       34,871       35,258
 Deferred tax liabilities                              87,455       79,702
 Provisions                                             1,896        1,876
 Other financial liabilites                            44,187       33,141
 Other long-term liabilities                            5,904        5,340
                                                      535,157      453,477
                                                                        
EQUITY                                                                   
SHARE CAPITAL                                          176,790      174,782
CONTRIBUTED SURPLUS                                     27,247       26,445
ACCUMULATED OTHER COMPREHENSIVE INCOME                  54,389       58,842
RETAINED EARNINGS                                    1,016,410      969,586
                                                    1,274,836    1,229,655
                                                  $  2,214,431   $ 2,096,569

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

                     Third Quarters Ended            Nine Months Ended
                                                                   September
                  September 30,   September 30,   September 30,       30,
                     2012           2011           2012           2011
                  (unaudited)    (unaudited)    (unaudited)   (unaudited)
                                                                  
Sales              $    610,717   $    574,092   $  1,858,766  $  1,794,219
Licensing and
commission income        2,578         1,736         9,340        8,402
TOTAL REVENUE          613,295       575,828     1,868,106    1,802,621
                                                                  
Cost of sales          473,736       462,975     1,430,862    1,412,036
GROSS PROFIT           139,559       112,853       437,244      390,585
                                                                  
                                                                  
Selling expenses        55,577        48,241       164,875      140,703
General and
administrative
expenses               48,418        38,521       143,156      128,781
Research and
development
expenses                 7,293         7,048        20,863       22,378
OPERATING PROFIT        28,271        19,043       108,350       98,723
                                                                  
Finance expenses         3,895         4,659        13,506       16,246
INCOME BEFORE
INCOME TAXES            24,376        14,384        94,844       82,477
                                                                  
Income taxes
expense                  4,390       (8,690)        15,350        5,246
NET INCOME         $     19,986   $     23,074   $     79,494  $     77,231
                                                                  
EARNINGS PER
SHARE                                                              
     Basic        $       0.64   $       0.71   $       2.51  $       2.37
     Diluted      $       0.63   $       0.71   $       2.48  $       2.36
                                                                  
SHARES
OUTSTANDING                                                        
      Basic -
      weighted
     average       31,387,163    32,506,383    31,733,936   32,596,280
      Diluted -
      weighted
     average       31,878,391    32,613,976    32,041,423   32,779,635

                            DOREL INDUSTRIES INC.
      CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME
                       ALL FIGURES IN THOUSANDS OF US $
                                                                  
                        Third Quarters Ended          Nine Months Ended
                      September                     September     September
                         30,        September 30,       30,            30,
                        2012          2011           2012         2011
                    (unaudited)    (unaudited)   (unaudited)   (unaudited)
                                                                  
NET INCOME             $   19,986    $    23,074    $   79,494   $   77,231
                                                                  
OTHER COMPREHENSIVE
INCOME (LOSS):                                                     
Cumulative
translation account:                                               
Net change in
unrealized foreign
currency gains
(losses) on
translation of
net investments in
foreign operations,
net of tax of nil         10,102      (39,256)          141       (557)
                                                                  
                                                                  
Net changes in cash
flow hedges:                                                       
Net change in
unrealized gains
(losses) on
derivatives
designated as
cash flow hedges             217         8,390        1,121         397
Reclassification to
income                       236           251          731       1,522
Reclassification to
the related
non-financial asset      (2,951)         1,191      (8,017)       4,972
Deferred income
taxes                        651       (2,646)        1,571     (1,735)
                        (1,847)         7,186      (4,594)       5,156
                                                                  
Defined benefit
plans:                                                             
Actuarial gains
(losses) on defined
benefit plans               (14)           116          (6)         (6)
Deferred income
taxes                          4          (30)            1        (84)
                           (10)            86          (5)        (90)
                                                                  
TOTAL OTHER
COMPREHENSIVE INCOME
(LOSS)                     8,245      (31,984)      (4,458)       4,509
                                                                  
TOTAL COMPREHENSIVE
INCOME (LOSS)          $   28,231    $   (8,910)    $   75,036   $   81,740

                                        DOREL INDUSTRIES INC.
                    CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY
                                   ALL FIGURES IN THOUSANDS OF US $
                                                                                      
                                    Attributable to equity holders of the Company
                                            Accumulated other
                                       comprehensive income       Retained earnings              
                                        Cumulative                  Defined      Other
                   Share    Contributed Translation  Cash Flow      Benefit    Retained      Total
                  Capital     Surplus     Account     Hedges        Plans     Earnings     Equity
                (unaudited) (unaudited) (unaudited) (unaudited)  (unaudited) (unaudited) (unaudited)
                                                                              
Balance as at
December 30,
2010              $  178,816  $   23,776   $  67,970  $  (1,032)   $  (2,312) $   904,633 $ 1,171,851
                                                                                      
Net income                -          -          -          -           -     77,231     77,231
Total other
comprehensive
income (loss)             -          -      (557)      5,156        (90)          -      4,509
Issued under
stock option
plan                    429          -          -          -           -          -        429
Reclassification
from contributed
surplus due to
exercise of
stock options            89       (89)          -          -           -          -          -
Repurchase and
cancellation of
shares              (3,240)          -          -          -           -          -    (3,240)
Premium paid on
share repurchase          -          -          -          -           -    (9,406)    (9,406)
Share-based
payments                  -      2,160          -          -           -          -      2,160
Dividends on
common shares             -          -          -          -           -   (14,677)   (14,677)
Dividends on
deferred share
units                     -         53          -          -           -       (53)          -
Balance as at
September 30,
2011              $  176,094  $   25,900   $  67,413  $    4,124   $  (2,402) $   957,728 $ 1,228,857
                                                                                      
                                                                                      
Balance as at
December 30,
2011              $  174,782  $   26,445   $  52,760  $    6,082   $  (7,236) $   976,822 $ 1,229,655
                                                                                      
Net income                -          -          -          -           -     79,494     79,494
Total other
comprehensive
income (loss)             -          -        141    (4,594)         (5)          -    (4,458)
Issued under
stock option
plan                  5,121          -          -          -           -          -      5,121
Reclassification
from contributed
surplus due to
exercise of
stock options         1,107    (1,107)          -          -           -          -          -
Repurchase and
cancellation of
shares              (4,220)          -          -          -           -          -    (4,220)
Premium paid on
share repurchase          -          -          -          -           -   (13,592)   (13,592)
Share-based
payments                  -      1,822          -          -           -          -      1,822
Dividends on
common shares             -          -          -          -           -   (18,986)   (18,986)
Dividends on
deferred share
units                     -         87          -          -           -       (87)          -
Balance as at
September 30,
2012              $  176,790  $   27,247   $  52,901  $    1,488   $  (7,241) $ 1,023,651 $ 1,274,836

                            DOREL INDUSTRIES INC.
           CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
                       ALL FIGURES IN THOUSANDS OF US $
                                                                   
                       Third Quarters Ended           Nine Months Ended
                                                     September     September
                    September 30,   September 30,       30,            30,
                       2012           2011           2012         2011
                    (unaudited)    (unaudited)   (unaudited)   (unaudited)
                                                                  
CASH PROVIDED BY
(USED IN):                                                         
                                                                  
OPERATING
ACTIVITIES                                                         
Net income            $    19,986    $    23,074   $    79,494   $   77,231
Items not involving
cash:                                                              
  Depreciation and
 amortization            13,327        14,093       39,321      41,705
  Amortization of
  deferred
 financing costs             89         (270)          320         376
  Accretion expense
  on contingent
  consideration and
  put option
 liabilities                649           523        2,108       1,610
  Change of
  assumptions on
  contingent
  consideration and
  put option
 liabilities              (457)         (113)      (1,430)     (1,086)
  Unrealized
  (gains)/losses
  due to foreign
  exchange exposure
  on contingent
  consideration and
  put option
 liabilities              1,249         (546)        1,606     (1,067)
  Other finance
 expenses                 3,157         4,406       11,078      14,260
  Income taxes
 expense                  4,390       (8,690)       15,350       5,246
  Share-based
 payments                   480           546        1,708       1,941
  Pension and
  post-retirement
  defined benefit
 plans                      716           824        2,172       2,516
  Loss (gain) on
  disposal of
  property, plant
 and equipment                4            33         (76)        (26)
                         43,590        33,880      151,651     142,706
Net change in
balances related to
operations:                                                        
  Trade and other
 receivables             17,083        36,061     (33,434)    (27,027)
 Inventories           (19,548)        45,692     (76,832)      63,014
  Other financial
 assets                   (146)             -        (978)           -
 Prepaid expenses         1,607       (2,610)      (2,470)     (4,146)
  Trade and other
 payables              (45,577)      (40,034)       26,019    (30,574)
  Pension and
  post-retirement
  benefit
 obligations              (717)         (411)      (2,472)     (2,510)
  Provisions, other
  financial
  liabilities and
  other long-term
 liabilities                396          (74)        (250)       (691)
                       (46,902)        38,624     (90,417)     (1,934)
                                                                  
 Income taxes paid      (3,365)       (4,489)     (13,213)    (23,692)
  Income taxes
 received                 9,686           579       15,255       1,069
 Interest paid          (2,059)       (2,191)     (10,403)    (12,301)
 Interest received          313             -          885           -
                                                                  
CASH PROVIDED BY
OPERATING
ACTIVITIES                 1,263        66,403       53,758     105,848
                                                                  
FINANCING
ACTIVITIES                                                         
 Bank indebtedness     (10,494)       (6,500)      (9,381)     (8,282)
  Increase of
 long-term debt          43,883            -       62,614           -
  Repayments of
 long-term debt        (16,500)      (29,244)     (16,500)    (21,123)
  Repayments of
  contingent
  consideration and
  put option
 liabilities            (6,804)       (2,431)      (6,972)     (2,431)
 Financing costs              -            47        (192)          34
 Share repurchase         (863)      (10,089)     (17,812)    (12,646)
  Issuance of share
 capital                  3,873            27        4,807         429
  Dividends on
 common shares          (9,417)       (4,897)     (18,986)    (14,677)
CASH PROVIDED BY
(USED IN) FINANCING
ACTIVITIES                 3,678      (53,087)      (2,422)    (58,696)
                                                                  
INVESTING
ACTIVITIES                                                         
  Acquisition of
 businesses            (10,270)            -     (14,667)           -
  Additions to
  property, plant
 and equipment          (5,876)       (8,093)     (20,577)    (23,154)
  Disposals of
  property, plant
 and equipment               15            32          150         142
  Additions to
 intangible assets      (4,159)       (5,043)     (14,593)    (14,855)
CASH USED IN
INVESTING
ACTIVITIES              (20,290)      (13,104)     (49,687)    (37,867)
                                                                  
  Effect of
  exchange rate
 changes on cash
  and cash
  equivalents              2,161           988          493         745
                                                                  
NET INCREASE
(DECREASE) IN CASH
AND CASH
EQUIVALENTS             (13,188)         1,200        2,142      10,030
                                                                  
Cash and cash
equivalents,
beginning of period       45,094        24,578       29,764      15,748
                                                                  
CASH AND CASH
EQUIVALENTS, END OF
PERIOD                $    31,906    $    25,778   $    31,906   $   25,778



                                            DOREL INDUSTRIES INC.
                                        INDUSTRY SEGMENTED INFORMATION
                                      THIRD QUARTERS ENDED SEPTEMBER 30
                                       ALL FIGURES IN THOUSANDS OF US $
                                                                                             
                       Total                 Juvenile         Recreational / Leisure     Home Furnishings
                 2012        2011        2012        2011        2012        2011        2012        2011
              (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
                                                                                      
Total revenue  $   613,295 $   575,828  $  249,126  $  227,080  $  228,953  $  209,823  $  135,216  $  138,925
Cost of sales     473,736    462,975    180,046    176,991    173,658    162,768    120,032    123,216
Gross profit      139,559    112,853     69,080     50,089     55,295     47,055     15,184     15,709
Selling
expenses           55,038     47,742     26,149     19,394     24,569     23,967      4,320      4,381
General and
administrative
expenses           42,010     36,373     21,046     20,188     16,647     12,203      4,317      3,982
Research and
development
expenses            7,293      7,048      4,996      5,573      1,563        877        734        598
Operating
profit             35,218     21,690  $   16,889  $    4,934  $   12,516  $   10,008  $    5,813  $    6,748
Finance
expenses            3,895      4,659                                                            
Corporate
expenses            6,947      2,647                                                            
Income taxes        4,390    (8,690)                                                            
Net income     $    19,986 $    23,074                                                            
                                                                                             
Earnings per
Share                                                                                         
    Basic     $      0.64 $      0.71                                                            
    Diluted   $      0.63 $      0.71                                                            
                                                                                             
Depreciation
and
amortization
included in
operating
profit         $    13,285 $    14,049  $    9,707  $   10,300  $    2,437  $    2,318  $    1,141  $    1,431


                                            DOREL INDUSTRIES INC.
                                        INDUSTRY SEGMENTED INFORMATION
                                        NINE MONTHS ENDED SEPTEMBER 30
                                       ALL FIGURES IN THOUSANDS OF US $
                                                                                             
                       Total                Juvenile         Recreational / Leisure     Home Furnishings
                 2012        2011        2012        2011        2012        2011        2012        2011
              (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
                                                                                      
Total revenue  $ 1,868,106 $ 1,802,621  $  773,406  $  740,665  $  701,782  $  659,344  $  392,918  $  402,612
Cost of sales   1,430,862  1,412,036    560,568    557,220    524,864    500,702    345,430    354,114
Gross Profit      437,244    390,585    212,838    183,445    176,918    158,642     47,488     48,498
Selling
expenses          163,143    139,133     77,425     60,649     72,561     65,643     13,157     12,841
General and
administrative
expenses          124,766    115,795     66,031     61,460     44,973     41,369     13,762     12,966
Research and
development
expenses           20,863     22,378     14,710     17,875      3,882      2,577      2,271      1,926
Operating
profit            128,472    113,279  $   54,672  $   43,461  $   55,502  $   49,053  $   18,298  $   20,765
Finance
expenses           13,506     16,246                                                            
Corporate
expenses           20,122     14,556                                                            
Income taxes       15,350      5,246                                                            
Net income     $    79,494 $    77,231                                                            
                                                                                             
Earnings per
Share                                                                                         
    Basic     $      2.51 $      2.37                                                            
    Diluted   $      2.48 $      2.36                                                            
                                                                                             
Depreciation
and
amortization
included in
operating
profit         $    39,198 $    41,571  $   28,941  $   30,455  $    6,734  $    6,874  $    3,523  $    4,242









SOURCE DOREL INDUSTRIES INC.

Contact:

MaisonBrison Communications
Rick Leckner
(514) 731-0000

Dorel Industries Inc.
Jeffrey Schwartz
(514) 934-3034
 
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