Dorel Increases Third Quarter Sales and Earnings MONTREAL, Oct. 29 /PRNewswire-FirstCall/ -- Dorel Industries Inc. (TSX: DII.A; DII.B; NASDAQ: DIIBF) today announced improved year-over-year results for the third quarter ended September 30, 2003. Sales for the most recent three month period rose 16.5% to US$298.5 million. Third quarter net income was up 14.8% to US$18.8 million or US$0.58 per share fully diluted compared to US$0.51 per share fully diluted a year ago. For the nine months, sales increased 11.9% to US$840.1 million while net income grew 15.5% to US$54.3 million. Year-to-date earnings per share were US$1.68 on a fully diluted basis compared to US$1.55 fully diluted for the nine months a year ago. Dorel President and CEO, Martin Schwartz, stated that management is encouraged with the progress made during the third quarter. "There have been several positive developments in our various divisions during the quarter. The benefits of these efforts have been particularly evident through the month of September as we have witnessed an improvement in the retail sector. Current visibility provides us with confidence that 2004 will be a most exciting and profitable year for Dorel. Results for the third quarter and nine months ended September 30, 2003 were as follows: > Juvenile Third quarter sales in the Juvenile segment rose 16.0% to US$165.2 million from US$142.5 million a year ago. Earnings from operations grew 10.4% to US$13.6 million, compared to US$12.4 million. Nine month sales reached US$499.1 million, an 18.5% increase from last year's US$421.2 million. Earnings from operations reached US$50.1 million, up 37.6% from the nine months last year. While the segment posted double digit year-over-year growth, third quarter sales in the United States were down from last year's levels. Nonetheless, new product roll-outs are beginning to influence sales and should have a greater impact during the fourth quarter and through 2004. Several of these products, including the Eddie Bauer wood collection of high chairs, step-stools and basinets as well as Safety 1st's neat! Diaper Disposal System have met with enthusiastic responses from consumers in the United States. neat!, Dorel's revolutionary new product, is being launched this week in Canada. In Europe, August sales, normally slow because of the traditional summer holiday period, were further significantly impacted by the widely reported heat experienced throughout the continent. While Ampa was affected by this situation, it continued to contribute strong numbers to the Juvenile segment through most of the third quarter. Home Furnishings Home Furnishings sales for the third quarter gained 17.2% to reach US$133.2 million compared to US$113.6 million a year ago. Earnings from operations increased 3.5% to US$17.1 million from US$16.5 million last year. For the nine months, revenues were up 3.4% to US$341.0 million from US$329.9 million, while earnings from operations were flat at US$46.5 million. Sales of ready-to-assemble furniture, excluding Carina Furniture Industries which was acquired last month, increased 6% over last year and 37% over this year's second quarter. While margins remained relatively constant at Dorel Asia and Cosco Home and Office, they were down in RTA furniture. The decrease in RTA was due to aggressive sales efforts and pricing which increased sales but also had the effect of lowering margins. As well, since two of RTA's five factories (excluding Carina) are located in Canada and serve the United States, the strong Canadian dollar had a negative affect on the segment. "The process of introducing Dorel's systems and methods into Carina's operations is well underway," said Mr. Schwartz. "We anticipate this will result in additional efficiencies. Going forward, Carina's strength in the office superstore and do-it-yourself retail chain sectors is expected to provide opportunities for growth. Ameriwood has also been successful in attracting new customers and new listings, notably in the electronic superstore sector. The division has been particularly aggressive in taking shelf space from the competition." Outlook "While 2003 has presented its challenges, we have nonetheless made excellent progress through the year. We have corrected certain issues, continued to improve product development, particularly in juvenile and have integrated two new companies, including Ampa, our largest acquisition to date. In addition, we are now starting to see the needed turn in retail. "It is anticipated that fourth quarter juvenile sales in the United States will be higher for the first time in a year. The combined effects of Ameriwood's proactive programs and the Carina acquisition will translate into additional gains in Home Furnishings. The positive turn in retail we have been waiting for since the beginning of the year has now started to materialize and we are quite excited at the prospects for 2004," concluded Mr. Schwartz. Guidance The Company is maintaining the annual guidance issued August 7, 2003. Earnings will likely be closer to the low end of the US$2.30 to US$2.40 per share range. Sales in Juvenile are anticipated to be at the low end of the previously announced US$675 million and US$715 million range with earnings from operations at from 10% to 11% of sales. Expected Home Furnishings sales will be at the higher end of the previously announced US$460 million and US$490 million range while earnings from operations are being maintained at the forecast of between 13% to 14% of sales. Conference Call Dorel Industries Inc. will hold a conference call to discuss these results today at 1:00 P.M. Eastern Time. Interested parties can join the call by dialing (514) 807-8791 (Montreal or overseas) or (800) 814-4861 (elsewhere in North America). The conference call can also be accessed via live webcast at http://www.newswire.ca/ or http://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 21022635(pound sign) on your phone. This tape recording will be available on Wednesday, October 29 as of 3:00 P.M. until 11:59 P.M. on Wednesday, November 5, 2003. Complete financial statements are available on the Company's website, http://www.dorel.com/, and will be available through the SEDAR and EDGAR websites. Profile Dorel Industries Inc. is a global manufacturer of consumer products. It specializes in two market segments: juvenile products and home furnishings. Dorel's extensive product offering includes juvenile products such as infant car seats, strollers, high chairs, toddler beds, cribs, infant health and safety aids, play-yards and juvenile accessories; home furnishings such as a wide variety of Ready-to-Assemble (RTA) furniture for home and office use as well as metal folding furniture, futons, step stools, ladders and other imported furniture items. Dorel employs approximately 4,800 people in fourteen countries. Major North American facilities are located in Montreal, Quebec; Toronto and Cornwall, Ontario; Columbus, Indiana; Wright City, Missouri; Tiffin, Ohio; Dowagiac, Michigan; and Canton, Massachusetts. The Company's major divisions in the United States include Ameriwood Industries and the Dorel Juvenile Group (DJG USA), which incorporates the Cosco and Safety 1st brand names. In Canada, Dorel operates Ridgewood Industries, Carina Furniture Ltd. and Dorel Home Products. European operations are carried out through the Dorel Juvenile Group (DJG Europe) located in Holland and the Ampa Group which has major facilities in France, Italy and Portugal. Brand names marketed in Europe are Maxi-Cosi, Bebe Confort, Quinny, Safety 1st, Babideal, MonBebe and Baby Relax. Dorel's imported furniture business is carried out through Dorel Asia. 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 the Company. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for the Company's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.