Auto Glass Slump Causes D'Ieteren to Revise Guidance
December 27, 2012

by Casey Neeley,

Brussels, Belgium-based D'Ieteren, owner of the Belron® Group and Belron's U.S. subsidiary, Safelite Group, has revised its "Guidance for 2012 and 2013," reporting it anticipates declines in the coming year. In addition to owning Belron and its automotive subsidiaries, D'Ieteren also owns D'Ieteren Auto which distributes new and used vehicles, spare parts and accessories. It also provides long-term car rental services as well as distributes two-wheelers through D'Ieteren Sport, according to the company website.

The company cites decreasing repair and replacement demand as reason for the decline.

"The persistent negative trends in the vehicle glass repair and replacement markets is leading D'Ieteren to update its guidance to a roughly 30 percent decline of its 2012 current consolidated result before tax, group's share, versus 2011 (versus roughly -25 percent previously advised) and, in case such trends were to continue into the new year, despite probably more normal weather conditions, to anticipate a further decline of roughly 10 percent to 15 percent of its 2013 current consolidated result before tax, group's share, versus 2012," reads the report.

D'Ieteren discussed its mounting debt in its 2012 Half-Yearly Financial Report and cited a $1 billion deficit. The company also referenced declining repair and replacement jobs but noted new opportunities for growth. In the report, the company also noted numerous acquisitions during the first half of 2012.

While final numbers for D'Ieteren's 2012 financial year have not yet been released, Safelite's multiple recent acquisitions may be an indicator of D'Ieteren's faith in its continued opportunities for growth in the repair and replacement sector.

Safelite spokesperson Melina Metzger was unavailable to comment on what D'Ieteren's latest financial report will mean for Safelite.

D'Ieteren anticipates the release of its 2012 full-year results in February 2013.

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