Belron Reports 4 Percent Year-to-Date Drop
in Jobs, Compared with 2010
November 17, 2011
Belron's total worldwide repair and replacement jobs is down 4
percent for 2011, when compared with the same year-to-date period
in 2010, according to the most recent financial report
released by the company's Belgium-based parent company, D'Ieteren.
However, repair and replacement jobs, totaling 2.9 million, remained
flat for the third quarter when compared with last year, according
to the company.
The company reports that worldwide, sales dropped one percent in
the third quarter when compared with the same period last year-comprised
of 1.3 percent organic growth for the period and 0.8 percent acquired
growth, but offset by a 3.1 percent adverse currency translation
Belron experienced a 1.5 percent drop in year-to-date sales, consisting
of a 0.7 percent organic decrease, 0.7 percent acquired growth and
1.5 percent adverse currency translation.
In Europe, company officials say third-quarter sales were 3.6 percent
lower than in 2010, consisting of a 3.5 percent organic decrease,
0.9 percent acquired growth, and a 1 percent adverse translation
"The organic sales decrease was due to market declines in
the majority of countries, primarily as a result of the challenging
economic environment," writes D'Ieteren "The acquired
growth is predominantly
in Russia following the acquisitions in late 2010 and early
Outside Europe, the company saw third-quarter sales growth of 2
percent, consisting of 7 percent organic growth and 0.6 acquired
growth, partially offset by a 5.6 percent unfavorable translation
effect. Belron attributes the organic growth to "the benefit
of investments in both marketing activities and key account relationships
which have enabled the business to grow despite challenging marketing
conditions." The company reports the "acquisition of a
number of franchisee businesses" in Canada as part of this
Belron predicts moderate organic sales growth for the rest of the
year, "as share gains are expected to offset continued market
declines." The company's net unusual costs for the year are
expected to reach approximately $16 million (USD) (12 million Euros)
for the full year, related to the Canadian acquisitions, along with
"the impairment of certain intangible IT assets following a
change in strategy to leverage new technology, partially offset
by a one-off gain relating to a change in the [United Kingdom] government
index for pension revaluations from the retail price index to the
consumer price index."
At press time, company officials had not yet responded to requests
for further details on the noted Canadian acquisitions.
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