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Press release from CNW Group

Dorel announces improved third quarter results

Thursday, November 08, 2012

Dorel announces improved third quarter results09:20 EST Thursday, November 08, 2012Juvenile leads the way Juvenile segment operating profit improves significantlyRecreational/Leisure continues to build on its positive trendEPS of US$0.63 per diluted share compared to US$0.46 excluding tax benefit in 2011 MONTREAL, Nov. 8, 2012 /CNW Telbec/ - 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 HighlightsThird Quarters Ended September 30All figures in thousands of US $, except per share amounts 20122011Change %Total revenue613,295575,8286.5%Net income19,98623,074(13.4%) Per share - basic0.640.71(9.9%) Per share - diluted0.630.71(11.3%)Average number of shares outstanding -diluted weighted average31,878,39132,613,976         Summary of Financial HighlightsNine Months Ended September 30All figures in thousands of US $, except per share amounts 20122011Change %Total revenue1,868,1061,802,6213.6%Net income79,49477,2312.9% Per share - basic2.512.375.9% Per share - diluted2.482.365.1%Average number of shares outstanding -diluted weighted average32,041,42332,779,635  Juvenile Segment  Third Quarters Ended September 30 20122011  $% of rev.$% of rev.Change %Total revenue249,126 227,080 9.7%Gross profit69,08027.7%50,08922.1%37.9%Operating profit16,8896.8%4,9342.2%242.3%            Nine Months Ended September 30 20122011  $% of rev.$% of rev.Change %Total revenue773,406 740,665 4.4%Gross profit212,83827.5%183,44524.8%16.0%Operating profit54,6727.1%43,4615.9%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 20122011  $% of rev.$% of rev.Change %Total revenue228,953 209,823 9.1%Gross profit55,29524.2%47,05522.4%17.5%Operating profit12,5165.5%10,0084.8%25.1%            Nine Months Ended September 30 20122011  $% of rev.$% of rev.Change %Total revenue701,782 659,344 6.4%Gross profit176,91825.2%158,64224.1%11.5%Operating profit55,5027.9%49,0537.4%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 20122011  $% of rev.$% of rev.Change %Total revenue135,216 138,925 (2.7%)Gross profit15,18411.2%15,70911.3%(3.3%)Operating profit5,8134.3%6,7484.9%(13.9%)            Nine Months Ended September 30 20122011  $% of rev.$% of rev.Change %Total revenue392,918 402,612 (2.4%)Gross profit47,48812.1%48,49812.0%(2.1%)Operating profit18,2984.7%20,7655.2%(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.OtherCash 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 dividendThe 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 CallDorel 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 or 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 4:00 P.M. until 11:59 P.M. on Thursday, November 15, 2012.Complete financial statements will be available on the Company's website,, and will be available through the SEDAR websites.ProfileDorel Industries Inc. (TSX: DII.B, DII.A) is a world class juvenile products and bicycle company. Now in its 50th 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 1st, 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 StatementsCertain 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 POSITIONALL FIGURES IN THOUSANDS OF US $        as atSeptember 30,2012  as atDecember 30, 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  174,782CONTRIBUTED SURPLUS 27,247  26,445ACCUMULATED OTHER COMPREHENSIVE INCOME 54,389  58,842RETAINED EARNINGS 1,016,410  969,586  1,274,836  1,229,655 $2,214,431 $2,096,569DOREL INDUSTRIES INC.CONDENSED CONSOLIDATED INTERIM INCOME STATEMENTSALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS  Third Quarters Ended Nine Months Ended September 30,2012 September 30,2011 September 30,2012 September 30,2011 (unaudited) (unaudited) (unaudited) (unaudited)            Sales$610,717 $574,092 $1,858,766 $1,794,219Licensing and commission income 2,578  1,736  9,340  8,402TOTAL REVENUE 613,295  575,828  1,868,106  1,802,621            Cost of sales 473,736  462,975  1,430,862  1,412,036GROSS PROFIT 139,559  112,853  437,244  390,585                        Selling expenses 55,577  48,241  164,875  140,703General and administrative expenses  48,418  38,521  143,156  128,781Research and development expenses 7,293  7,048  20,863  22,378OPERATING PROFIT 28,271  19,043  108,350  98,723            Finance expenses 3,895  4,659  13,506  16,246INCOME BEFORE INCOME TAXES 24,376  14,384  94,844  82,477            Income taxes expense 4,390  (8,690)  15,350  5,246NET 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  32,779,635DOREL INDUSTRIES INC.CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOMEALL FIGURES IN THOUSANDS OF US $             Third Quarters Ended Nine Months Ended September  30, 2012 September 30, 2011 September  30, 2012 September 30, 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 ofnet 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 ascash flow hedges 217  8,390  1,121  397Reclassification to income 236  251  731  1,522Reclassification to the related non-financial asset (2,951)  1,191  (8,017)  4,972Deferred 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 $81,740DOREL INDUSTRIES INC.CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITYALL FIGURES IN THOUSANDS OF US $                 Attributable to equity holders of the Company   Accumulated other comprehensive income Retained earnings    ShareCapitalContributedSurplusCumulativeTranslationAccountCash FlowHedges DefinedBenefitPlansOtherRetainedEarningsTotal 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 77,231Total other comprehensive income (loss) - - (557) 5,156  (90) - 4,509Issued under stock option plan 429 - - -  - - 429Reclassification 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 - -  - - 2,160Dividends 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 79,494Total other comprehensive income (loss) - - 141 (4,594)  (5) - (4,458)Issued under stock option plan 5,121 - - -  - - 5,121Reclassification 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 - -  - - 1,822Dividends 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$1,274,836DOREL INDUSTRIES INC.CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWSALL FIGURES IN THOUSANDS OF US $            Third Quarters Ended Nine Months Ended September 30,2012 September 30,2011 September  30,2012 September 30,2011 (unaudited) (unaudited) (unaudited) (unaudited)            CASH PROVIDED BY (USED IN):                       OPERATING ACTIVITIES           Net income$19,986 $23,074 $79,494 $77,231Items 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 contingentconsideration 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  142,706Net 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 INFORMATIONTHIRD QUARTERS ENDED SEPTEMBER 30ALL FIGURES IN THOUSANDS OF US $                  TotalJuvenileRecreational / LeisureHome Furnishings 20122011201220112012201120122011 (unaudited)(unaudited)(unaudited)(unaudited)(unaudited)(unaudited)(unaudited)(unaudited)                 Total revenue$613,295$575,828$249,126$227,080$228,953$209,823$135,216$138,925Cost of sales 473,736 462,975 180,046 176,991 173,658 162,768 120,032 123,216Gross profit 139,559 112,853 69,080 50,089 55,295 47,055 15,184 15,709Selling expenses 55,038 47,742 26,149 19,394 24,569 23,967 4,320 4,381General and administrative expenses 42,010 36,373 21,046 20,188 16,647 12,203 4,317 3,982Research and development expenses 7,293 7,048 4,996 5,573 1,563 877 734 598Operating profit 35,218 21,690$16,889$4,934$12,516$10,008$5,813$6,748Finance 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 amortizationincluded in operating profit$13,285$14,049$9,707$10,300$2,437$2,318$1,141$1,431  DOREL INDUSTRIES INC.INDUSTRY SEGMENTED INFORMATIONNINE MONTHS ENDED SEPTEMBER 30ALL FIGURES IN THOUSANDS OF US $                  TotalJuvenile  Recreational / LeisureHome Furnishings 20122011201220112012201120122011 (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$402,612Cost of sales 1,430,862 1,412,036 560,568 557,220 524,864 500,702 345,430 354,114Gross Profit 437,244 390,585 212,838 183,445 176,918 158,642 47,488 48,498Selling expenses 163,143 139,133 77,425 60,649 72,561 65,643 13,157 12,841General and administrative expenses 124,766 115,795 66,031 61,460 44,973 41,369 13,762 12,966Research and development expenses 20,863 22,378 14,710 17,875 3,882 2,577 2,271 1,926Operating profit 128,472 113,279$54,672$43,461$55,502$49,053$18,298$20,765Finance 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 amortizationincluded in operating profit$39,198$41,571$28,941$30,455$6,734$6,874$3,523$4,242    SOURCE: DOREL INDUSTRIES INC.For further information: MaisonBrison Communications Rick Leckner (514) 731-0000 Dorel Industries Inc. Jeffrey Schwartz (514) 934-3034