Gene`s BMX News

[BMX-News]

*** Dorel Completes Successful Year ***

Montreal, Canada -- 03/10/2010



Dorel Industries Inc. (TSX: DII.B DII.A) today announced results
for the fourth quarter and year ended December 30, 2009. Revenue
for the fourth quarter increased 13.6% to US$545.3 million from
US$479.9 million a year ago with pre-tax earnings of US$31.0 million
compared to US$19.6 million, an increase of 58.5%. Net income rose
26.3% to US$24.2 million, or US$0.73 per diluted share, from US
$19.2 million, or US$0.57 per diluted share last year.

Revenue for the year was slightly lower at US$2.1 billion as compared
to US$2.2 billion in 2008. 2009 pre-tax income was US$128.3 million as
compared to US$132.0 million in the prior year. Net income decreased
5.0% to US$107.2 million, or US$3.21 per diluted share from US$112.9
million or US$3.38 per diluted share. Organic revenue growth was
approximately 7% in the fourth quarter and for the year was a
decline of less than 3%.

As has been disclosed throughout the year, significant amounts
pertaining to foreign exchange gains and losses across both 2009
and 2008 have had the impact of shifting reported earnings from
one year to the other.

In 2008 the Company recognized unrealized gains of US$10.5
million (after-tax US$7.4 million or US$0.22 per diluted share)
on foreign exchange hedging instruments intended for use in 2009,
which reversed in 2009, creating a loss in the current year.

Over and above this, in 2009 the Company recorded an additional loss
of US$4.2 million on 2010 foreign exchange contracts. The total after-
tax negative impact on 2009 results was US$10.0 million or US$0.30
per diluted share. In addition, the fourth quarter results for 2009 include
an after-tax net gain of US$2.9 million, or US$0.09 per diluted share,
pertaining to the successful resolution of a claim.

"As we entered 2009 we were cautious, yet confident about Dorel's
prospects. While we were prudent and focused on cost containment,
we did not reduce in any way our commitment to new product
development as we recognize that this remains a key driver for us.

Despite the downturn, we have continued to allocate funds to
business acquisitions and research and development, as we invest
for the future.

This resulted in the introduction of a number of excellent new products
in 2009 which has further strengthened our competitive position in our
core Juvenile and Recreational/Leisure segments. Our commitment was
most recently evidenced by our announced US$20.8 million investment
to be made over the next three years at our Columbus, Indiana car
seat facility for a new Design and Development Competency Center,"
commented Dorel CEO and President, Martin Schwartz.

"We are extremely pleased with the 2009 results. If we exclude
the amounts above in relation to our foreign exchange hedging
program and the settlement of the claim, our normalized diluted
earnings per share improved year over year to US$3.42 from
US$3.16 in 2008.

This improvement is reflected in our strong cash flow from operations
which totalled a record US$205 million. Even after re-investing in the
business in the form of capital expenditures and business acquisitions,
funding our share buy back program and paying dividends to our
shareholders, we reduced our debt levels by almost US$114 million,"
added Mr. Schwartz.

Recreational/Leisure Segment - Fourth quarter

Recreational/Leisure segment revenues increased by US$17.8 million,
or 11.3%. Approximately two-thirds of the increase was from new
businesses acquired during the second half of the year with the
balance from the segment's Independent Bicycle Dealers (IBD)
business serviced by the Cycling Sports Group (CSG). Excluding
acquisitions and driven by successful new products, CSG posted
sales gains of over 25% versus last year.

These increases were partially offset by lower sales by
Pacific Cycle to the segment's mass merchant customers.

IBD sales did include a greater volume of less expensive, lower
margin bicycles which dampened earnings within the CSG division.

Despite the lower sales to mass merchants, Pacific Cycle posted
improved earnings for the quarter as did the segment's CSG and
Apparel Footwear Group (AFG) divisions. The overall significant
year-over-year improvement was a clear sign that newer models,
particularly in the CSG division, are being well accepted by dealers.

Full year

Revenues increased 3.8% to US$681.4 million in 2009 compared
to US$656.6 million a year ago. This was due to sales growth within
the CSG division as well as incremental revenues derived through
the business acquisitions completed.

Partially offsetting these increases was a sales drop to the segment's
mass merchant customers. As a result, the overall segment organic
sales decline for the year was just over 3%. Earnings declined despite
a greater proportion of sales by CSG to the Company's IBD and
sporting goods customers.

With the recession, consumers purchased less high end products,
trading down to lower priced items, which carry lower margins. In
addition, some of the segment's competitors chose to discount their
lines early in the year, resulting in an erosion of overall industry
profitability.

For Full Financial Highlights Press Please See:
www.newswire.ca/en/releases/archive/March2010/10/c8460.html

Profile

Dorel Industries Inc. (TSX: DII.B, DII.A) is a world class juvenile
products and bicycle company. Established in 1962, Dorel creates
style and excitement in equal measure to safety, quality and value.

The Company's lifestyle leadership position is pronounced in both its
Juvenile and Bicycle categories with an array of trend-setting products.

Dorel's powerfully branded products include Safety 1st, Quinny, Cosco,
Maxi-Cosi and Bébé Confort in Juvenile, as well as Cannondale, Schwinn,
GT, Mongoose, Iron Horse and SUGOI in Recreational/Leisure. Dorel's
Home Furnishings segment markets a wide assortment of furniture
products, both domestically produced and imported.

Dorel is a US$2.2 billion company with 4500 employees,
facilities in nineteen countries, and sales worldwide.
_________________
BMX News Reporter, An Array Of People
Reporting The BMX News & Information
For And With ( www.genesbmx.com )