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Dorel Sees Continued Growth in 2005

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MONTREAL, Canada (May 19) – Shareholders attending the Dorel Industries Inc. annual general meeting today were treated to an animated demonstration of the global consumer product company’s hottest products by CEO, Martin Schwartz. He told his audience that product development is just one of the strengths that has created a ten-year compound annual growth rate […]

MONTREAL, Canada (May 19) – Shareholders attending the Dorel Industries Inc. annual general meeting today were treated to an animated demonstration of the global consumer product company’s hottest products by CEO, Martin Schwartz. He told his audience that product development is just one of the strengths that has created a ten-year compound annual growth rate of 22% for revenue and 33% for net income. And, he said additional growth is expected through 2005.

Fiscal 2004 was the best ever for Dorel. Revenues reached US$1.7 billion, up 45% from 2003. Earnings topped the US$100 million mark for the first time, a 35% year-over-year increase. “These achievements were made despite serious obstacles such as high petroleum costs, increased raw material prices and shortages of certain materials,” said Mr. Schwartz.
An important element of Dorel’s success is its in-house design of exciting, quality, name branded consumer products. This was again evident in 2004. Dorel’s Schwinn brand launched the “rebirth of cool” with the Sting-Ray chopper style bike in April. By year end well over half a million units had been sold in the US. The bike was on numerous retailer and media top 10 Christmas gift lists and was named the 2004 Outdoor Toy of the Year by the Toy Industry Association.

Market research indicates that the chopper bicycle style is not a brief trend and that youngsters are specifically looking for the Schwinn Sting-Ray. Pacific Cycle, Dorel’s Recreational/Leisure operating subsidiary, has responded with a number of new Sting-Ray models for 2005 to further capture the mania created, including adult units as well as 3 and 5 speed versions.

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