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 effect.

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 impact.

"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 2011."

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 growth.

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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