D’Ieteren, parent company to Belron and Safelite, reports that six-month sales for the automotive glass repair and replacement division are down 0.5 percent. The “extreme winter weather in the U.S. and market share gains in a majority of countries,” bolstered results. However, an “exceptionally mild winter weather in Northern Europe” had a negative impact.
“As expected, the results for the first half reflect the impact on Belron’s activities of particularly unfavorable weather in Europe at the beginning of the year, which could not be offset by a very cold winter in the United States,” officials write in a company statement.
For the first half of the year, Belron reported sales of $1.9 billion USD (€1.5 billion in Euros), which includes a 0.6-percent organic increase and a 2.5-percent uptick due to acquisitions, which was offset by a 3-percent negative currency translation and a decrease of 0.6 percent from one less trading day.
Repair and replacement jobs were up 3.3 percent to 5.7 million.
“The translation impact is primarily due to a weaker U.S., Australian and Canadian dollar and Brazilian Real,” according to officials.
European sales declined by 5.9 percent, including decrease in organic sales of 7.2 percent due to “an exceptionally warm winter” in Northern Europe and a 0.8-percent decline due to one less trading day. This was partially offset by acquisition growth of 1.9 percent, mostly based on the Spanish Guardian acquisition at the end of December 2013, the additional DoctorGlass franchisees in Italy and a positive currency impact of 0.2 percent.
“The trading outlook for the remainder of the year is expected to remain challenging,” officials indicate. “In the U.S., it is anticipated that sales will continue to exceed 2013 with a better fall through than in the first half of the year. The markets in Northern Europe will, however, continue to be weak but will benefit from the cost containment measures taken since April.”
D’Ieteren’s overall sales came in at $3.92 billion USD (€2.97 billion in Euros), which is flat compared with the first half of 2013.