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 2010a 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."
Need more info and analysis about the issues?
Subscribe to AGRR Magazine.