Belron: drop in sales for 1H 2011

Belron's parent company, D'Ieteren, has reported a 1.7% drop in external sales for the first half of the year for the worldwide auto glass repair and replacement company, as part of its fir…

Belron’s parent company, D’Ieteren, has reported a 1.7% 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 from about USD 2.15 billion (USD) to about USD 2.11 billion, to milder winter weather, compared to an exceptional 2010 and weak economic conditions, along with 0.9% adverse currency translation. On the positive side, Belron reported an increase of 0.8% due to acquisitions as part of its external sales report. Overall, for the first half of the year, the company reports that 54% of its jobs throughout the world were carried out externally, while the remaining 46% took place in shop. Replacements make up 71% of Belron’s worldwide job completion, compared with 29% repairs. Belron’s worldwide sales come 57% came from the European market, with the other 43% coming from the rest of the world. According to D’Ieteren, Belron completed six million jobs worldwide, compared with 6.3 million for the first half of 2010 a decrease of 5.3%. Belron\’s worldwide operating result for the first half of the year is USD 178.1 million, a decrease of 13.8% from USD 215.3 million for the first half of 2010. According to company officials, 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.