D'Ieteren Interim Report Offers Insights
September 5, 2012

by Casey Neeley, cneeley@glass.com

Belron and D'Ieteren 2012 first half segment contribution to the current result before tax, group's share

Belron and parent company D'Ieteren show nearly $1 billion debt in their newly released 2012 half-year financial reports. Despite the debt, the companies display opportunities for growth through recent first-half acquisitions in the upcoming fiscal year.

According to the statement, Belron officials report that "repair and replacement jobs decreased by 9.6 percent to 5.4 million" with a current operating result of $118.6 million (94 million Euros) compared to $155.1 million (122.9 million Euros) reported for 2011. Before taxes, Belron's current result shows a decline of 28.6 percent; a reduction that equates to $89.1 million (70.6 million Euros).

The report shows Belron's total financial debt grew from $955.9 million (757.4 million Euros) as a result of "exchange and restructuring costs."

Overall sales for the 2012 year so far have shown a decrease of 4.6 percent; down to $1.76 billion (1,391.5 million Euros) compared to $1.84 billion (1,459.3 million Euros) in 2011.

Recent acquisitions in the U.S., France and Canada are "recognized as an intangible asset with a finite useful life" with "amortization amount[ing] to $4.4 million (3.5 million Euros)," D'Ieteren officials report.

Total number of jobs, sales amd costs reported for the half-years 2012 and 2011 with noted change in percentage

Earlier this year, Belron acquired several other new companies. The first of these additional 2012 acquisitions was the assets of Carglass Guangzhou on January 1 in China. On February 16 Belron purchased the assets of Guardian Lleida which has three branches in Spain, as well as acquiring 100 percent interest in Euskalglass, which has seven branches in Spain. March saw the acquisitions of assets for Vetri auto Biella of Italy as well as the assets of Carglass Wuhan in China. In May, the company "acquired the goodwill of Hengyang branch of Carglass Changsha" in China, according to the report.
Breakdown of 2012 jobs and sales

During this time, Belron also purchased 13 independently owned former Apple or Duro franchisees in Canada.

The acquisitions the company made throughout the first half resulted in a 1 percent growth.

Unusual weather offered one of the most notable declines in profit, according to company officials. The report shows a "decline in organic sales of 9.1 percent partially offset by a 1.0 percent increase due to acquisitions and a 3.5 percent positive currency translation. Organic sales reflect very mild winter weather in Northern Europe and North America as well as weak economic trading conditions."

Additionally, the report states, "outside of Europe, sales increased by 6 percent comprising an organic sales reduction of 2 percent offset by a 2 percent impact due to acquisitions in Canada, Australia and China, and a positive currency impact of 6 percent due to the stronger US dollar."
Belron total net debt in 2012 compared to 2011

According to Belron officials, they are realistic about their expectations for growth in the latter part of 2012.

"The sales for the period show that the market is still challenging but the volume trend is gradually improving from that of the beginning of the year," state Belron representatives in the report. "Belron is continuing to increase market share, however, not sufficiently to completely offset the current market declines."

For additional report details, please view the complete report.


Segement Information: Segment Income Statement - Operating Segments

Segment Information continued: Segment Statement of Financial Position - Operating Segments

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