D'Ieteren Reports 10-Percent Third-Quarter
Growth for Belron; Expects to Spend Nearly $6 Million by End of
Year on Belron US Restructuring
November 18, 2009
Belron parent company D'Ieteren reported this morning that Belron's worldwide
sales grew by 10 percent in the third quarter, and that by the end
of the year, it estimates that nearly $6 million ($4 million Euros)
will be spent in "unusual costs relating to the restructuring
of U.S. acquisitions."
D'Ieteren notes that worldwide Belron's growth was 9 percent organic
and one percent from acquisitions. Since the beginning of the year,
the company has seen a 14-percent growth in sales, consisting of
10 percent organic, 3 percent acquisitions and 1 percent "from
currency translation." Total repair and replacement jobs, throughout
the world, grew by 12 percent during the third quarter, and 14 percent
since the beginning of the year, D'Ieteren reports.
In Europe specifically, Belron achieved sales growth of 14 percent
during the third quarter15 percent organic and 1 percent acquired,
offset by an adverse currency impact of 2 percent. The company attributes
the growth there to "increased marketing actitivities and maintaining
close relationships with insurers and fleet partners."
Outside Europe, D'Ieteren reports that Belron achieved sales growth
of 5 percent during the third quarter2 percent organic and
3 percent from currency translation.
"The organic growth [outside Europe] reflects a continued
investment in marketing activities and key account relationships,
which have enabled the business to grow, despite challenging market
conditions," reads the company's statement.
Belron's year-to-date sales outside Europe grew by 15 percent,
consisting of 3 percent organic growth, 7 percent acquired growth
and 5 percent from currency translation.
Specific numbers were not provided for Belron's U.S. operations.
D'Ieteren projects that Belron will continue to experience organic
sales growth for the remainder of the year.
Though the auto glass repair and replacement business is up for
Belron, D'Ieteren reported decreases in several of its other markets,
including auto distribution. However, overall, the company has a
"Based on the current outlook for the three activities of
the groupvisibility about the economy still being lower than
usualand absent significant unforeseen events, the current
consolidated result before tax, group's share, is now expected to
be slightly up compared to 2008, at constant consolidation scope,"
reads the statement.
HERE for full text of statement from D'Ieteren.
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