Belron Reports 1.7 Percent Drop in Sales for First Half of Year

August 26, 2011

by Penny Stacey

Belron's parent company, D'Ieteren, has reported a 1.7 percent drop in external sales for the first half of the year for the worldwide auto glass repair and replacement company, as part of its first half-year 2011 report.

The company attributes the drop, down from approximately $2.15 billion (USD) to approximately $2.11 billion, to milder winter weather, "compared to an exceptional 2010 and weak economic conditions," along with 0.9 percent adverse currency translation. On the positive side, Belron reports a 0.8 percent increase due to acquisitions as part of its external sales report.

Overall, for the first half of the year, the company reports that 54 percent of its jobs throughout the world were done mobilly, while 46 percent where done in shop. Replacements comprised 71 percent of Belron's worldwide job completion, compared with 29 percent repairs. Belron reports that 57 percent of its entire worldwide sales came from the European market, with the other 43 percent coming from throughout the rest of the world. D'Ieteren reports that throughout the world Belron completed 6 million jobs, compared with 6.3 million for the first half of 2010—a 5.3 percent drop.

Belron's worldwide operating result for the first half of the year is reported at $178.1 million, down 13.8 percent from $215.3 million for the first half of last year. Company officials attribute the overall drop to the decline in sales volumes "compared to an exceptional first half of 2010 and its impact on margins, persistent difficult market conditions in Brazil, the costs of additional capacity in the United States as well as increased marketing investments in some countries, partially offset by lower long-term executive incentive scheme costs."

Belron projects "moderate organic sales growth" for the second half of the year, noting that the period "will overlap with easier comparatives."

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