Earnings Release • Nov 16, 2011
Earnings Release
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Embargo: Wednesday 16 November 2011 – 6.00 pm CET
In light of the sale of Avis Europe, which took effect on 3 October 2011, the content of this press release concerns "continuing operations" only.
| Year-on-year evolution | Q1 2011 | HY 2011 | Q3 2011 | YTD 2011 |
|---|---|---|---|---|
| Sales | +9.8% | +5.5% | +12.1% | +7.5% |
| Current consolidated result before tax, group's share |
-3.7% | -5.9% | +23.9% | +2.0% |
Embargo: Wednesday 16 November 2011 – 6.00 pm CET
Sales at D'Ieteren Auto were up 28.3% in the third quarter, compared with the third quarter of 2010, and up 16.8% year-to-date.
New car registrations in Belgium amounted to 114,101 units, up 0.3% compared with the third quarter of 2010. Registrations year-to-date were 440,546 units, up 1.5% on 2010.
The makes distributed by D'Ieteren Auto achieved a market share of 23.32% in the third quarter. Volkswagen became the market's best selling make and Audi topped the premium segment. Škoda continued to show strong growth, while Seat experienced a very slight downturn. Year-todate market share of D'Ieteren Auto amounts to 21.90%, an improvement over the first half-year 2011 (21.40%) and over the full year 2010 (20.13%).
Registrations of new light commercial vehicles in Belgium have risen to 12,932 units in the third quarter, up 15.5%, mainly due to an increase of corporate purchases, after reduced investments in commercial vehicles during the past two years. D'Ieteren Auto's quarterly market share in this segment amounted to 12.86%, thanks to a particularly dynamic sales policy and to the success of new engines. Year-to-date, this segment is up 17.1% to 48,689 units. D'Ieteren Auto achieved a 10.64% aggregate market share at end-September, compared with 9.97% at end-June 2011 and 9.33% over the full year 2010.
The number of new vehicles, including commercial vehicles, delivered by D'Ieteren Auto in the third quarter reached 30,599 units, up 25.1% (104,719 units year-to-date, up 17.2%). Sales of new vehicles increased with 34.4% (+19.5% year-to-date).
Sales of spare parts and accessories rose substantially in the third quarter. D'Ieteren Lease sales, D'Ieteren Car Centers' after-sales activities and used vehicle sales also increased. D'Ieteren Sport sales fell, reflecting a strongly declining market, particularly in the motorcycle segment.
The Belgian car market is expected to exceed 540,000 new car registrations in 2011. On this basis, D'Ieteren Auto pursues its objective of annual market share growth.
Sales for the third quarter of 2011 are reported as 1.0% lower than last year with 1.3% organic growth and 0.8% acquired growth being offset by a 3.1% adverse currency translation effect. Year-to-date sales are 1.5% lower than last year consisting of a 0.7% organic decrease, 0.7% acquired growth and a 1.5% adverse currency translation. Third quarter repair and replacement jobs of 2.9 million were flat compared to 2010 and year-to-date jobs of 8.9 million are down by 4%.
In Europe, third quarter sales were 3.6% lower than 2010, consisting of a 3.5% organic decrease, 0.9% acquired growth and a 1.0% 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. The acquired growth is predominantly in Russia following the acquisitions in late 2010 and early 2011. Year-to-date sales have decreased by 2.6% which consists of a 3.4% organic decrease partially offset by 0.9% acquired growth with an adverse currency translation effect of 0.1%.
Outside Europe, sales growth during the third quarter was 2.0% consisting of 7.0% organic growth and 0.6% acquired growth partially offset by a 5.6% unfavourable translation effect. The organic growth reflects the benefit of investments in both marketing activities and key account relationships which have enabled the business to grow despite challenging market conditions. The acquired growth has arisen in Canada and relates to the acquisition of a number of franchisee businesses. The translation impact is due primarily to the weaker US dollar. Year-to-date sales are flat against 2010 comprising 3.0% organic growth and 0.5% acquired growth offset by a 3.5% unfavourable currency translation.
The trading outlook for the remainder of the year is for moderate organic sales growth as share gains are expected to offset continued market declines. Net unusual costs are currently expected to reach around EUR 12 million for the full year reflecting further expenditure relating to the Canadian acquisitions, 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 UK government index for pension revaluations from the retail price index to the consumer price index.
Belron remains committed to delivering outstanding service to its customers, its insurance and fleet partners, and improving its operational efficiency.
Embargo: Wednesday 16 November 2011 – 6.00 pm CET
Total sales of the two activities were up 12.1% in the third quarter (+7.5% year-to-date). The current consolidated result before tax, group's share, was up 23.9% (+2.0% year-to-date).
As at 30 September, the consolidated financial net debt of continuing operations remains stable year-on-year. Proceeds of the sale of Avis Europe (412 million EUR taking into account the net effect of foreign exchange hedging) were received on 12 October 2011.
Based on the current outlook for our activities and given the economic conditions, 2011 current consolidated result before tax, group's share, from continuing operations is still expected to be up around 5%, compared with a 2010 record year.
This interim statement has been prepared under the responsibility of the Board of Directors of s.a. D'Ieteren n.v. The figures presented in this interim statement have not been audited.
This document contains forward-looking information that involves risks and uncertainties, including statements about D'Ieteren's plans, objectives, expectations and intentions. Readers are cautioned that forward-looking statements include known and unknown risks and are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of D'Ieteren. Should one or more of these risks, uncertainties or contingencies materialise, or should any underlying assumptions prove incorrect, actual results could vary materially from those anticipated, expected, estimated or projected. As a result, D'Ieteren does not assume any responsibility for the accuracy of these forward-looking statements.
End of press release
Embargo: Wednesday 16 November 2011 – 6.00 pm CET
D'Ieteren is a group of services to the motorist founded in 1805, serving over 13 million customers in 33 countries in two areas:
- D'Ieteren Auto distributes Volkswagen, Audi, Škoda, Seat, Porsche, Bentley, Lamborghini, Bugatti and Yamaha vehicles across Belgium. It is the country's number one car dealer, with a market share of over 20% and more than one million vehicles of the distributed makes on the road. Sales in 2010: 2.7 billion euro.
- Belron (92.7% owned) is the worldwide leader in vehicle glass repair and replacement. 1,900 branches and 9,500 mobile vans, trading under more than 15 different brands including Carglass, Autoglass and Safelite Auto Glass, serve customers in 33 countries. Sales in 2010: 2.8 billion euro.
28 February 2012 – 2011 Full-year results
Jean-Pierre Bizet, Chief Executive Officer Benoit Ghiot, Chief Financial Officer Vincent Joye, Financial Communication - Tel: + 32 (0)2 536.54.39 E-mail: [email protected] – Website: www.dieteren.com
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