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 quarter—15 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 quarter—2 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 positive outlook.

"Based on the current outlook for the three activities of the group—visibility about the economy still being lower than usual—and 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.

CLICK HERE for full text of statement from D'Ieteren.

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