Auto Glass Slump
Causes D'Ieteren to Revise Guidance
December 27, 2012
by Casey Neeley, email@example.com
Brussels, Belgium-based D'Ieteren, owner of the Belron® Group
and Belron's U.S. subsidiary, Safelite Group, has revised its "Guidance
for 2012 and 2013," reporting it anticipates declines in the coming
year. In addition to owning Belron and its automotive subsidiaries,
D'Ieteren also owns D'Ieteren Auto which distributes new and used
vehicles, spare parts and accessories. It also provides long-term
car rental services as well as distributes two-wheelers through
D'Ieteren Sport, according to the company website.
The company cites decreasing repair and replacement demand as reason
for the decline.
"The persistent negative trends in the vehicle glass repair and
replacement markets is leading D'Ieteren to update its guidance
to a roughly 30 percent decline of its 2012 current consolidated
result before tax, group's share, versus 2011 (versus roughly -25
percent previously advised) and, in case such trends were to continue
into the new year, despite probably more normal weather conditions,
to anticipate a further decline of roughly 10 percent to 15 percent
of its 2013 current consolidated result before tax, group's share,
versus 2012," reads the report.
D'Ieteren discussed its mounting debt in its 2012 Half-Yearly
Financial Report and cited a $1 billion deficit. The company
also referenced declining repair and replacement jobs but noted
new opportunities for growth. In the report, the company also noted
numerous acquisitions during the first half of 2012.
While final numbers for D'Ieteren's 2012 financial year have not
yet been released, Safelite's multiple recent acquisitions may be
an indicator of D'Ieteren's faith in its continued opportunities
for growth in the repair and replacement sector.
Safelite spokesperson Melina Metzger was unavailable to comment
on what D'Ieteren's latest financial report will mean for Safelite.
D'Ieteren anticipates the release of its 2012 full-year results
in February 2013.
This story is an original story by AGRR™ magazine/glassBYTEs.com™. Subscribe to AGRR™ Magazine.
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