Belron Says Full-Year AGRR Jobs Grew

D’Ieteren, parent company to Belron and Safelite, reported today that full-year 2013 automotive glass repair and replacement jobs are up by 4.6 percent to 10.8 million.

The company broke these jobs down as follows:

—53 percent were mobile;

—47 percent were completed at branches;

—73 percent were replacements;

—27 percent were repairs;

—54 percent of jobs took place in Europe; and

—46 percent took place in the rest of the world, including the U.S.

The division’s sales increased by 4.3 percent to $3.8 billion in USD (€2.8 billion in Euros), including an organic sales increase of 5 percent and an upswing of 2.4 percent related to acquisitions. The growth was partially offset by a “negative currency impact of 3.1 percent,” officials wrote in a company statement. In the same period of 2013, the division’s sales came in at $3.7 billion in USD (€2.7 billion in Euros).

“Organic sales reflect colder winter weather in both Northern Europe and North America,” according to the company’s statement. “[T]he acquired growth is mainly due to acquisitions in the United Kingdom, the U.S., Italy and Canada.”

In a breakdown by region, the company reported European sales grew by 8 percent, including an organic sales increase of 6.5 percent and acquisition growth of 2.7 percent. Officials said the acquisition growth is thanks to the purchased of ADR in the U.K. during the second half of 2012 and Doctor Glass in Italy during the first half of 2013. The growth, however, was partially offset by a negative currency impact of 1.2 percent, according to officials.

Outside of Europe, the company says sales inched up by 0.2 percent, including an organic increase of 3.3 percent and “a positive 2.1-percent impact due to acquisitions in the U.S. and Canada.” The increase was partially offset by a negative currency impact of 5.2 percent due to the strengthening of the Euro, officials explained. The company acquired an additional 16 independently-owned former Apple and Duro branches in Canada.

“The sales for the period benefited from the colder winter weather in the first quarter together with additional marketing campaigns in several countries,” officials reported.

“Although colder winter weather during the first quarter in both Northern Europe and North America did provide additional opportunities, the impact of the weather has generally been largely offset by continued underlying market declines,” they added. “The major factors are considered to be lower discretionary incomes, lower speeds and less vehicle crime.

“In response, actions have been taken to protect or gain segment share as well as adjust the cost base,” they continued. “In 2013, headcount realignments were carried out in the Australian, U.K. and Canadian businesses. The 2013 results reflect both these and the full-year impact from realignments that took place during 2012.”

The company faced “particularly adverse conditions” in Brazil and Australia.

“In Brazil, the business gained market share in the face of severe price competition,” officials said in the report. “The additional volumes necessitated additional subcontractor and set-up costs thereby adversely impacting profit. In Australia, the business suffered from market declines, combined with lower market share due to two key accounts reducing Belron’s share in the handling of their vehicle glass repair and replacement claims.”

Of note, Belron said it signed a franchise agreement in Indonesia, bringing the total countries in which the company offers services to 35. The franchise agreement is with PT Glassindo Mobil Utama in Indonesia.

Looking ahead, company officials said, “The outlook for 2014 is for moderate organic sales growth due to expected continuing adverse market trends and to unfavorable weather conditions in Europe at the beginning of the year. In order to improve its financial results, the business will continue to be innovative in all areas, increase the flexibility of its operations and look for further efficiency initiatives.”

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

Overall, Belron’s operating result was down 5.4 percent to $214.9 million USD (€156.9 million in Euros), compared to $271.9 million USD (€198.5 million in Euros) in the same period of 2013.

“Excluding the provision reversal relating to a long-term incentive plan in 2012, current operating result is up 1.2 percent due to profit growth in most markets, as a result of sales volume increases and their impact on margins, partially offset by profit declines in Brazil and Australia as a result of adverse market environments,” officials said.

D’Ieteren Auto reported sales of $3.6 billion in USD (€2.6 billion in Euros), down 5.7 percent year-over-year due to a declining market and a reduction in dealer inventories.

To view the full report, click here.

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1 Response to Belron Says Full-Year AGRR Jobs Grew

  1. glasseye says:

    “headcount realignments” – the new buzz phrase ??

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