D’Ieteren Reports 5.8-Percent Growth for Belron

Belron’s parent company D`Ieteren reported today that Belron’s worldwide sales grew by 5.8 percent to $1,950.06 million USD (€1,472.3 million Euros) largely due to the positive impact of colder winter weather.

D’Ieteren points out that Belron’s growth included an upswing of 5.4 percent organic and 2.7 percent from acquisitions, offset by a negative currency impact of 1.2 percent and 1.1 percent from fewer trading days.

Belron’s repair and replacement jobs increased by 3.1 percent to 5.6 million jobs, according to D’Ieteren.

European sales were up by 9.9 percent, including an increase in organic sales of 8.7 percent and acquisition growth 3.2 percent. The company reports Belron acquired ADR in the United Kingdom in the second half of 2012 and Doctor Glass in Italy during the first half of 2013, which bolstered results. The European segment of Belron saw a negative currency impact of 0.9 percent and a negative impact of 1.1 percent due to fewer trading days.

“Outside of Europe, sales increased by 1.4 percent, comprising an organic sales increase of 1.9 percent—despite tougher market conditions in Canada and Australia—a positive 2.2-percent impact due to acquisitions in the U.S. and Canada, partially offset by a negative currently impact of 1.7 percent due to the weaker Brazilian Real and an adverse trading days impact of 1 percent,” officials write in the statement.

“Sales for the period benefited from the colder winter weather compared with 2012, together with additional marketing campaigns in several countries, although this was partially offset by organic market declines,” officials added.

Specific numbers were not provided for Belron’s U.S. operations.

Belron’s operating result was $128.89 million USD (€97.3 million in Euros), compared to $123.195 million USD (€93.0 million in Euros) in the previous year.

“The outlook for the remainder of the year remains challenging with continuing pressure expected from the economic conditions and the reduced benefit of the winter weather,” officials write in the statement.

The company also noted that Belron’s net financial debt decreased to $950.983 USD (€717.9 million in Euros) in June 2013 from $1,055.05 million USD (€796.5 million in Euros) in June 2012.

Though the auto glass repair and replacement business is up for Belron, D’Ieteren reported a decrease in its auto distribution business of 7.2 percent year-over-year, attributing the decrease largely to a reduction in dealer inventories.

Overall, D’Ieteren officials predict annual results to be down 10 to 15 percent.

“Given the current outlook of its activities as well as the uncertain economic environment, D’Ieteren still expects its 2013 current consolidated result before tax, group’s share, to decline by 10 to 15 percent compared with 2012,” officials write in the statement.

To view the full release, click here.

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