UNITED STATES


UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



FORM 6-K



REPORT OF FOREIGN ISSUER PURSUANT TO RULES 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934



March 3, 2006



Commission File Number: 0-29712



DOREL INDUSTRIES INC.

________________________________________________________________________________________________





1255 Greene Ave, Suite 300, Westmount, Quebec, Canada H3Z 2A4

_________________________________________________________________________________________________





Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.


Form 20-F

[    ]

Form 40-F

[ X ]


Indicate by check mark whether the registrant by furnishing the information in this Form is also thereby furnishing

the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.


Yes

[    ]

No

[ X ]








[f2mar06002.gif]

 


C  O  M  M  U  N  I  Q  U  É


JUVENILE

Cosco

Safety 1st

Maxi-Cosi

Bébé Confort

Baby Relax

Babidéal

MonBébé

Quinny



HOME FURNISHINGS

Ameriwood

Ridgewood

Charleswood

Dorel Home Products

Cosco Home & Office

Dorel Asia

Carina

SystemBuild

Cosco Ability Care Essentials

Altra Furniture


RECREATIONAL / LEISURE

Pacific Cycle

Schwinn

GT

Mongoose

InSTEP


EXCHANGES


CANADA

TSX:

DII.MV, DII.SV


U.S.A.

NASDAQ:

DIIB


CONTACT:

MaisonBrison/BarnesMcInerney

Rick Leckner

(514) 731-0000


Dorel Industries Inc.

Jeffrey Schwartz

(514) 934-3034



DOREL REPORTS 2005 Q4 AND ANNUAL RESULTS



Montreal, March 2, 2006 — Dorel Industries Inc. (TSX: DII.MV DII.SV; NASDAQ: DIIB) today released results for the fourth quarter and year ended December 30, 2005. Adjusted net income for the quarter, excluding restructuring costs incurred on the previously-announced Ameriwood ready-to-assemble (RTA) furniture plant shutdown was US$22.9 million or US$0.70 per diluted share, compared to US$34.7 million or US$1.05 per diluted share a year ago. Net income was US$22.5 million or US$0.69 per diluted share. Fourth quarter revenue was US$430.3 million, down from US$469.1 million a year ago.  


The revenue decline in the quarter was due to a sharp decline in the Recreational/Leisure segment, which declined by 35.8% against the fourth quarter of 2004 which included exceptional sales of the Sting-Ray bicycle in anticipation of the 2004 holiday shopping season. The Juvenile and Home Furnishing segments posted modest revenue increases of 1.5% and 2.0% respectively in the quarter.


Revenue for the full year increased by 3.0% to US$1.76 billion from last year’s revenue of US$1.71 billion.  Adjusted net income for the year declined 2.6% to US$97.5 million or US$2.96 per diluted share compared to US$100.1 million or US$3.04 per share a year ago. On an unadjusted basis, annual net income was down 8.7% to US$91.3 million or US$2.77 per diluted share.


Year-over-year increases in revenues also occurred in both the Juvenile and Home Furnishing segments, which increased by 9.1% and 4.8% respectively. However, these gains were offset by a decline in Recreational/Leisure sales of 11.5%, due principally to the 2004 success of the Sting-Ray bicycle. In 2005, our sales of these models were negligible as retailers were fully stocked throughout the year.


“In 2005 Dorel had strong performances in Juvenile and in several Home Furnishing units. However these were offset by challenges in Recreational/Leisure and Ready-to-Assemble (RTA) furniture. Pacific Cycle was following a huge success in 2004 with its Sting-Ray chopper bicycle, a success that made 2005 a difficult one by comparison. However, as a result of this event, we have re-focused our energy on improving the recreational product line beyond bicycles into motor scooters, swing sets and adding effort to other areas of that business. Our RTA furniture business continues to be in a turn-around phase. Significant improvements were made in sales and marketing, as well as new product development, but necessary factory improvements remain to be achieved,” commented Martin Schwartz, Dorel President and CEO.










Summary of Financial Highlights

Fourth quarter ended December 30

All figures in thousands of US $, except per share amounts

 

2005

2004

Change %

Revenue

430,258

469,072

-8.3%

Adjusted net income

22,893

34,721

-34.1%

Per share - Basic

0.70

1.06

-34.0%

Per share - Diluted

0.70

1.05

-33.3%

Net income

22,546

34,721

-35.1%

Per share - Basic

0.69

1.06

-34.9%

Per share - Diluted

0.69

1.05

-34.3%

Average number of shares outstanding -

   

diluted weighted average

32,859,112

32,924,736

 



Summary of Financial Highlights

Year ended December 30

All figures in thousands of US $, except per share amounts

 

2005

2004

Change %

Revenue

1,760,865

1,709,074

3.0%

Adjusted net income

97,453

100,076

-2.6%

Per share - Basic

2.97

3.06

-2.9%

Per share - Diluted

2.96

3.04

-2.6%

Net income

91,322

100,076

-8.7%

Per share - Basic

2.78

3.06

-9.2%

Per share - Diluted

2.77

3.04

-8.9%

Average number of shares outstanding -

   

diluted weighted average

32,927,701

32,915,232

 



Juvenile Segment

Fourth quarter Juvenile revenue was up 1.5% to US$201.2 million compared to US$198.2 million during the same period a year ago. Earnings from operations increased 27.1% to US$23.7 million from US$18.6 million last year. For the year, revenue rose 9.1% to US$846.9 million from US$776.4 million last year, while earnings from operations jumped 51.3% to US$99.4 million from US$65.7 million a year ago.


For the quarter, organic revenues increased in North America and Europe by 7.9% and 2.5% respectively. However, the lower rate of exchange of the Euro to U.S. dollar in the quarter had the effect of decreasing European revenues by 6.0%. The earnings improvement in the quarter was due mainly to earnings improvements in North America, where lower product liability costs and higher margins drove an earnings increase of 90%. European earnings were essentially flat compared to the prior year.


Sales successes occurred in both North America and Europe, despite an environment of higher raw material costs. In North America, juvenile sales increased by 8% driven by, sales increases in categories where Dorel expanded its product offerings in play yards, walkers and swings. Canadian sales were aided by new booster seat legislation and the strong Canadian dollar. Gross margins in the U.S. declined by 200 basis points due to higher raw material costs, principally resin, and a less profitable product mix. Offsetting this decline were improved margins in Canada due mainly to the strong Canadian dollar. Operating costs for the year declined due to product liability costs which decreased by US$22.6 million from 2004 levels.




Progress in Europe occurred in several markets, the most impressive of which were the United Kingdom, Germany, Italy and Spain. To a great extent, the success was driven by the introduction of new travel systems under the Quinny brand, known as the Buzz and Zapp.  2005 sales in Europe increased by 9% over the previous year. Contrary to the fourth quarter, revenue growth in Europe was unaffected by exchange rate variances as the annual average rate of exchange versus the U.S. dollar was similar in both 2005 and 2004.



Home Furnishings Segment

Home Furnishings revenue was up 2.0% to US$148.8 million during the fourth quarter compared to US$145.9 million a year ago. Adjusted earnings from operations, excluding restructuring costs, decreased 42.3% to US$8.2 million from US$14.2 million last year. Revenue for the year was up 4.8% to US$569.3 million from US$543.2 million last year. Adjusted earnings from operations for the year, excluding restructuring costs, were down 23.3% to US$33.2 million from US$43.3 million last year.


For the quarter, the revenue increase came from higher sales at Dorel Asia which offset a 5.5% decline at Cosco Home & Office and a 13% decline in sales of ready-to-assemble (RTA) furniture and futons at Ameriwood. The segment’s earnings for the quarter were lower than 2004 due to the continuing lower sales levels and lesser efficiencies at Ameriwood. Dorel Asia and Cosco Home & Office both posted earnings at or higher than last year’s levels.


For the year, revenue increases occurred at all Home Furnishing operations with the exception of Ameriwood’s RTA furniture sales.  Cosco Home & Office sales of folding furniture and other imported home furnishings increased by 7% over 2004, with gains coming mainly from sales of ladders and step stools. Successful new product placements in several categories by Dorel Asia at new and existing customers helped revenues reach US$133 million, a 65% increase from 2004. Ameriwood futon sales also rose, increasing by 28% over the prior year. However, ready-to-assemble sales declined by 17% from the prior year due to declines at mass merchant customers.


Earnings for the year declined due to lower sales and reduced margins at Ameriwood.  These margin declines were due principally to lower efficiencies and higher overhead absorption due to lower sales levels. The stronger Canadian dollar also decreased earnings as two of the Ameriwood plants are located in Canada and have substantial sales into the U.S. Ameriwood’s adjusted earnings, excluding all restructuring costs, declined by US$15.1 million from 2004 levels, offset by improved earnings at all other divisions within the segment. Of this decline, approximately US$5.0 million was due to lower sales levels with the balance due to decreased margins.


As has been detailed by the Company in prior disclosures, the RTA furniture division is undergoing several initiatives to re-ignite its earnings to reach acceptable levels of profitability.  During the year it successfully broadened its customer base from the traditional mass merchants and implemented an increasingly successful import program. However, the required improvements in factory operations were anticipated sooner. It is now believed these improvements will be in place by the end of the second quarter. As a result, RTA earnings for the first quarter are not expected to significantly improve over those of the fourth quarter. In addition since early February, particle board prices have been rising, which may put additional pressure on margins during the year.



Recreational/Leisure Segment

Fourth quarter Recreational/Leisure revenue decreased 35.8% to US$80.2 million compared to last year’s US$125.0 million. Earnings from operations dropped 58.6% to US$6.5 million from US$15.7 million. For the year, revenue was down 11.5% to $344.7 million from US$389.5 million last year. Full year earnings from operations were down 29.5% to US$34.9 million from US$49.4 million last year.


The revenue and earnings decline in the quarter was due exclusively to lower sales of the Sting-Ray bicycle. Excluding sales of this model, revenues increased by 10% over 2004 levels. For the year, 2005 sales include US$12.3 million from an extra month’s sales. Therefore, as 2004 only included eleven month’s results, true organic revenues actually declined by 14.7% from the prior year. Sales of non-Sting-Ray products actually increased by 9% over 2004 as the core business remains strong and is being expanded. These sales increases occurred in several product categories and brands.  However, Sting-Ray sales in 2004 far exceeded those in 2005 more than offsetting any increases.



Other

The Company’s tax rate increased to 14.6% in 2005 compared to 6.4% in 2004. After removing the impact of the restructuring costs the Company’s tax rate for the year was 16.3%, which was in line with expectations. The 2004 tax rate of 6.4% was unusually low due to lower earnings in higher tax rate jurisdictions as well as revaluation of long-term future tax balances, the benefit of loss carry-forwards not previously recognized and other adjustments.


Free cash flow, defined as cash flow from operations less capital expenditures was US$71.1 million in 2005 versus US$66.2 million in 2004.


Reconciliation of net income to adjusted net income

Included in this press release are the financial measures “adjusted earnings from operations” and “adjusted net income”, both non-GAAP financial measures, as the Company believes this permits more meaningful comparisons of its core business performance between the periods presented. A reconciliation of adjusted net income to GAAP net income is set forth below:


DOREL INDUSTRIES INC.

CONSOLIDATED STATEMENT OF INCOME

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

         
  

Fourth quarter ended December 30, 2005

 

Year ended December 30, 2005

  

As reported

Restructuring costs

Adjusted, excluding costs

 

As reported

Restructuring costs

Adjusted, excluding costs

         

TOTAL REVENUE

 

 $     430,258

 $                 -   

 $    430,258

 

 $  1,760,865

 $                 -   

 $  1,760,865

         

EXPENSES

        

  Cost of sales

 

        339,287

                   15

       339,302

 

     1,367,217

            (2,478)

     1,364,739

  Selling, general and
 administrative expenses

 

          44,437

                      -   

         44,437

 

        200,159

                      -   

        200,159

  Depreciation and amortization

          10,448

                      -   

         10,448

 

          38,999

                      -   

          38,999

  Research and development
 costs

            1,733

                      -   

           1,733

 

            7,945

                      -   

            7,945

  Restructuring costs

 

               550

               (550)

                   -   

 

            6,982

            (6,982)

                    -   

  Interest on long-term debt

 

            7,861

                      -   

           7,861

 

          31,240

                      -   

          31,240

  Other interest

 

               338

                      -   

              338

 

            1,410

                      -   

            1,410

  

        404,654

               (535)

       404,119

 

     1,653,952

            (9,460)

     1,644,492

         

Income before income taxes

 

          25,604

                 535

         26,139

 

        106,913

              9,460

        116,373

         

  Income taxes

 

            3,058

                 188

           3,246

 

          15,591

              3,329

          18,920

         

NET INCOME

 

 $       22,546

 $              347

 $      22,893

 

 $       91,322

 $           6,131

 $       97,453

         

EARNINGS PER SHARE

        

  Basic

 

$0.69

$0.01

$0.70

 

$2.78

$0.19

$2.97

  Diluted

 

$0.69

$0.01

$0.70

 

$2.77

$0.19

$2.96

         

SHARES OUTSTANDING

        

  Basic - weighted average

 

   32,858,942

   32,858,942

  32,858,942

 

   32,836,733

   32,836,733

   32,836,733

  Diluted - weighted average

 

   32,859,112

   32,859,112

  32,859,112

 

   32,927,701

   32,927,701

   32,927,701




CONFERENCE CALL

Dorel Industries Inc. will hold a conference call to discuss these results today at 10:30 A.M. Eastern Time. Interested parties can join the call by dialling (514) 807-8791 (Montreal or overseas) or (866) 250-4909 (elsewhere in North America). 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 21178323# on your phone. This tape recording will be available on Thursday, March 2nd, 2006 as of 1:30 P.M. until 11:59 P.M. on Thursday, March 9th, 2006.



Complete financial statements will be available on the Company's website, www.dorel.com, and will be available through the SEDAR and EDGAR websites.



Profile

Dorel Industries (TSX: DII.SV, DII.MV; NASDAQ: DIIB) 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, Dorel employs approximately 5,000 people in fourteen countries. Dorel also has offices in Shanghai and Shenzhen, China which oversee the sourcing, engineering and logistics of all Asian operations. 2005 sales were US$1.8 billion.


US operations include Dorel Juvenile Group USA, 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 products under the Ameriwood, Carina, SystemBuild, Altra Furniture and Ridgewood/Charleswood brands as well as the California Closets license; Cosco Home & Office, which markets home/office products under the Cosco and Cosco Ability Essentials brands and Samsonite license; and Pacific Cycle, which markets the Schwinn, Mongoose, GT, InSTEP and Roadmaster brands. 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.



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.


-30-






DOREL INDUSTRIES INC.

CONSOLIDATED BALANCE SHEET

ALL FIGURES IN THOUSANDS OF US $


 

as at

December 30,

2005

as at

December 30,

 2004

ASSETS

  

CURRENT ASSETS

  

Cash

$                  12,345

$               11,288

Accounts receivable

287,225

285,207

Income taxes receivable

14,817

7,587

Inventories

279,265

292,911

Prepaid expenses

10,288

12,756

Funds held by ceding insurer

3,647

7,920

Future income taxes

26,060

22,650

 

633,647

640,399

   

PROPERTY, PLANT AND EQUIPMENT

144,248

163,707

DEFERRED CHARGES

15,561

20,983

GOODWILL

481,518

512,546

INTANGIBLE ASSETS

253,245

262,968

OTHER ASSETS

10,750

10,786

ASSETS HELD FOR SALE

3,699

-

 

$             1,542,668

$           1,611,389

   

LIABILITIES

  

CURRENT LIABILITIES

  

Bank indebtedness

$                    4,828

$                  1,915

Accounts payable and accrued liabilities

305,922

353,229

Income taxes payable

18,483

12,105

Balance of sale payable

4,946

7,773

Current portion of long-term debt

8,025

7,686

 

 342,204

382,708

   
   

LONG-TERM DEBT

439,634

505,816

PENSION & POST-RETIREMENT BENEFIT OBLIGATIONS

19,081

19,357

BALANCE OF SALE PAYABLE

665

5,278

FUTURE INCOME TAXES

62,986

65,320

OTHER LONG-TERM LIABILITIES

5,656

4,631

   

SHAREHOLDERS’ EQUITY

  

CAPITAL STOCK

162,503

160,876

CONTRIBUTED SURPLUS

3,639

1,081

RETAINED EARNINGS

478,155

386,833

CUMULATIVE TRANSLATION ADJUSTMENT

28,145

79,489

 

672,442

628,279

 

$              1,542,668

$            1,611,389







DOREL INDUSTRIES INC.

CONSOLIDATED STATEMENT OF INCOME

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


 

Fourth quarter ended

Year ended

 

December 30,

2005

December 30,

2004

December 30,

2005

December 30,

2004

     

Sales 

$             426,053

$             464,492

$             1,740,693

$           1,690,952

     

Licensing and commission income 

4,205

4,580

20,172

18,122

     

TOTAL REVENUE 

430,258

469,072

1,760,865

1,709,074

     

EXPENSES 

    

Cost of sales 

339,287

364,289

1,367,217

1,315,921

Selling, general and administrative expenses

44,347

51,770

200,159

211,362

Depreciation and amortization 

10,448

8,930

38,999

34,611

Research and development costs 

1,733

1,729

7,945

6,420

Restructuring costs

550

-

6,982

-

Interest on long-term debt 

7,861

8,215

31,240

30,594

Other interest 

338

206

1,410

3,193

 

404,654

435,139

1,653,952

1,602,101

     

Income before income taxes 

25,604

33,933

106,913

106,973

     

Income taxes 

3,058

(788)

15,591

6,897

     

NET INCOME 

$              22,546

$               34,721

$                 91,322

$              100,076

     

EARNINGS PER SHARE: 

    

Basic 

$                  0.69

$                  1.06

$                     2.78

$                    3.06

Diluted 

$                  0.69

$                  1.05

$                     2.77

$                    3.04

     

SHARES OUTSTANDING

    

Basic – weighted average 

32,858,942

32,785,978

32,836,733

32,728,727

Diluted – weighted average 

32,859,112

32,924,736

32,927,701

32,915,232





DOREL INDUSTRIES INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

ALL FIGURES IN THOUSANDS OF US $


 

Fourth quarter ended

Year ended

 

December 30,

2005

December 30,

2004

December 30,

2005

December 30,

2004

     

CASH PROVIDED BY (USED IN):

    

OPERATING ACTIVITIES

    

Net income

$                22,546

$                34,721

$               91,322

$             100,076

Items not involving cash:

    

Depreciation and amortization

10,448

8,930

38,999

34,611

Amortization of deferred financing costs

386

416

1,592

1,578

Future income taxes

2,109

(1,996)

43

(4,439)

Stock based compensation

433

1,081

2,602

1,081

Restructuring costs

410

-

9,335

-

Loss (gain) on disposal of capital assets

(1,041)

398

(680)

808

 

35,291

43,550

143,213

133,715

     

Changes in non-cash working capital:

21,568

(13,890)

(44,345)

(17,055)

     

CASH PROVIDED BY OPERATING ACTIVITIES

56,859

29,660

98,868

116,660

     

FINANCING ACTIVITIES

    

Bank indebtedness

4,356

973

3,061

1,005

Long-term debt

(55,369)

(26,186)

(65,713)

223,892

Issuance of capital stock

-

214

1,417

3,908

CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES

(51,013)

(24,999)

(61,235)

228,805

     

INVESTING ACTIVITIES

    

Acquisition of subsidiary companies

-

(619)

(7,440)

(296,504)

Additions to property, plant and equipment – net

(3,395)

(7,672)

(19,895)

(32,600)

Deferred charges

(2,222)

(3,961)

(7,909)

(13,688)

Funds held by ceding insurer

(20)

1,835

4,273

(1,117)

Intangible assets

(190)

(238)

(4,213)

(3,029)

CASH USED IN INVESTING ACTIVITIES

(5,827)

(10,655)

(35,184)

(346,938)

     

Effect of exchange rate change on cash

(1,925)

(518)

(1,392)

(1,116)

     

NET INCREASE IN CASH

(1,906)

(6,512)

1,057

(2,589)

     

Cash, beginning of period

14,251

17,800

11,288

13,877

     

CASH, END OF PERIOD

$              12,345

$               11,288

$              12,345

$               11,288





DOREL INDUSTRIES INC.

CONSOLIDATED STATEMENT OF RETAINED EARNINGS

ALL FIGURES IN THOUSANDS OF US $


 

Year ended

 

December 30,

2005

December 30,

2004

   

BALANCE, BEGINNING OF YEAR 

$                 386,833

$                   286,757

   

Net income 

91,322

100,076

   

BALANCE, END OF YEAR

$                 478,155

$                   386,833





DOREL INDUSTRIES INC.

SEGMENTED INFORMATION

ALL FIGURES IN THOUSANDS OF US $


Industry Segments


 

Total

Juvenile

Home Furnishings

Recreational/Leisure

   

For the year ended December 30,

 

2005

2004

2005

2004

2005

2004

2005

2004

         

Total Revenues

$    1,760,865

$    1,709,074

$      846,856

$   776,370

$   569,347

$    543,219

$   344,662

$   389,485

Cost of sales

1,367,217

1,315,921

598,218

552,289

495,492

459,899

273,507

303,733

Selling, general and administrative

181,780

193,763

112,081

126,166

34,410

31,842

35,289

35,755

Depreciation and amortization

38,920

34,540

31,615

27,558

6,318

6,433

987

549

Research and development costs

7,945

6,420

5,542

4,675

2,403

1,745

-

-

Restructuring costs

6,982

-

-

-

6,982

-

-

-

Earnings from Operations

158,021

158,430

$        99,400

$     65,682

$     23,742

$      43,300

$     34,879

$    49,448

Interest

32,650

33,787

      

Corporate expenses

18,458

17,670

      

Income taxes

15,591

6,897

      
         

Net income

$         91,322

$       100,076

      


Industry Segments


 

Total

Juvenile

Home Furnishings

Recreational/Leisure

   

For the fourth quarter ended December 30,

 

2005

2004

2005

2004

2005

2004

2005

2004

         

Total Revenues

$      430,258

$      469,072

$      201,215

$   198,157

$   148,847

$   145,940

$    80,196

$  124,975

Cost of sales

339,287

364,289

142,746

144,023

130,743

123,150

65,798

97,116

Selling, general and administrative

40,429

45,661

24,446

26,572

8,411

7,084

7,572

12,005

Depreciation and amortization

10,436

8,911

9,178

7,684

922

1,039

336

188

Research and development costs

1,733

1,729

1,153

1,234

580

495

-

-

Restructuring costs

550

-

-

-

550

-

-

-

Earnings from Operations

37,823

48,482

$        23,692

$     18,644

$      7,641

$     14,172

$      6,490

$    15,666

Interest

8,199

8,421

      

Corporate expenses

4,020

6,128

      

Income taxes

3,058

(788)

      
         

Net income

$         22,546

$        34,721

      



Geographic Segments – Origin of Revenues


 

Year ended December 30,

Fourth quarter ended December 30,

 

2005

2004

2005

2004

     

Canada

$             187,029

$             167,571

$                38,712

$            35,165

United States

1,083,059

1,124,945

268,781

312,079

Europe

358,195

336,493

85,200

99,717

Other foreign countries

132,581

80,065

37,563

22,111

Total

$          1,760,865

$          1,709,074

$              430,258

$          469,072











Signatures


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.




DOREL INDUSTRIES INC.



By: /s/ Martin Schwartz_____________

Martin Schwartz

Title: President and Chief Executive Officer



By: /s/ Jeffrey Schwartz_____________

Jeffrey Schwartz

Title: Executive Vice-President,

 Chief Financial Officer





March 3, 2006