MONTREAL - Car seat and bike manufacturer Dorel Industries is on the hunt for acquisitions to expand its global presence as it prepares for growth once this year's expected slow economic recovery ends.

The Montreal-based company, which expanded its bike business last year, said it plans to use healthy cash generation to pay down debt, develop new products and expand through acquisitions.

"We're very focused on becoming more international so we're looking at a lot of opportunities all over the globe right now," CEO Martin Schwartz said Wednesday during a conference call.

He said Dorel (TSX:DII.B) is looking to expand its geographic reach and sell more of its goods within its existing network.

The maker of car safety seats for children, as well as furniture and bicycles, ended the year on a high note as its European business stabilized and high-end bike business grew.

Fourth-quarter profit, expressed in U.S. currency, grew by 26.3 per cent to US$24.2 million or 73 cents per diluted share. That compared with US$19.2 million, or 57 cents a year earlier.

Revenue for the quarter ended Dec. 30 was US$545.3 million, up 13.6 per cent from $479.9 million a year before.

For the year as a whole, Dorel's revenue slipped 1.9 per cent to US$2.14 billion from $2.18 billion and its net income fell five per cent to $107.2 million from $112.8 million.

The annual profit was the equivalent of US$3.21 per diluted share in 2009, compared with $3.38 per share in 2008.

Excluding foreign exchange hedging and proceeds from a legal settlement, earnings increased to US$3.42 from $3.15 in 2008.

Dorel generated a record US$205 million in cash from operations, which has been used to pay down $114 million of debt, pay dividends and buy back shares and for acquisitions and capital expenditures.

Schwartz said he was very pleased with the results and the company's ability to prepare for future growth.

"Continued development of innovative, primarily recession-resistant quality products, a new minimum margin requirement program and a discipline of cost containment contributed to the year's accomplishments," he said.

Several moves in its juvenile and recreation business should preserve its leadership position in 2010, Schwartz added. But the company expects that the slow pace of the economic recovery will continue to impact consumer buying habits, especially in the United States, where the economy will remain sluggish.

"We are not immune to these conditions, but as 2009 demonstrated, the nature of the great majority of our products and the customers to which we sell will protect us to a certain extent," he told analysts.

The results exceeded expectations. Analysts had forecast 64 cents of adjusted earnings and US$527.5 million of revenue.

Hugues Bourgeois of National Bank Financial said the results reflected margin improvements, stabilization of the European juvenile business and bike sales growth.

Juvenile division revenue increased by 13.1 per cent during the quarter to US$288.5 million but fell by 7.3 per cent from record 2008 levels to $995 million.

Sales at its U.S. division grew by more than 15 per cent while European sales were flat, marking the first time in 2009 that sales had not decreased.

Acquisitions accounted for about two-thirds of the 11.3 per cent quarterly revenue increase for the recreation and leisure segment. The rest came from its higher-end independent bicycle dealers business.

Excluding acquisitions, sales grew by 25 per cent from 2008. The increases were partially offset by lower sales to mass merchant customers.

Home Furnishings revenue grew by 18.4 per cent to $121.1 million.

On the Toronto Stock Exchange, Dorel's shares were up 16 cents at $33.61 in late-day trading Wednesday.