PR Newswire/Les Echos/
INTERIM MANAGEMENT STATEMENT
Embargo: Thursday 10 May 2012 - 6:00 pm CET
INTERIM MANAGEMENT STATEMENT FOR THE TRADING PERIOD ENDING MARCH 31, 2012
SUMMARY OF THE FIRST QUARTER
* Consolidated sales slightly down 2.6% compared with Q1 2011 (-0.3% at
constant consolidation perimeter(1)):
o D'Ieteren Auto: market share of 21.25% vs 21.89% for the FY 2011. Sales up
2.0% (+6.5% at constant consolidation perimeter(1));
o Belron: sales down 8.1%, consisting of an organic decline of 10.6%
reflecting the exceptionally mild weather since last November and the weak
economic environment, an acquisition growth of 0.8% and a favourable
currency impact of 1.7%.
* Current result before tax, group's share, down 61.6% (-60.6% at constant
consolidation perimeter(1)) as expected.
* Given the current outlook of its activities as well as the uncertain economic
environment, D'Ieteren still expects its 2012 current consolidated result
before tax, group's share(2), to decline by around 25% compared with an
CONSOLIDATED KEY FIGURES
Q1 2012 - Year-on-year evolution Actual At constant
Sales -2,6% -0,3%
- D'Ieteren Auto +2,0% +6,5%
- Belron -8,1% -8,1%
Current consolidated result before tax,
group's share -61,6% -60,6%
1. AUTOMOBILE DISTRIBUTION (D'IETEREN AUTO) & CORPORATE ACTIVITIES
Sales at D'Ieteren Auto were up 2.0% (+6.5% at constant consolidation
perimeter(1)) in the first quarter compared with Q1 2011.
New car registrations in Belgium totalled 148,363 units, down 12.7% compared
with Q1 2011. This lower than expected decline notably reflects the impact of
the withdrawal, at 31 December 2011, of the incentives for purchasing vehicles
with low CO2 emissions, which led to higher sales at the end of 2011 at the
expense of Q1 2012.
The makes distributed by D'Ieteren Auto reached a quarterly market share of
21.25%, lower than for the whole year 2011 (21.89%) yet higher than in
Q1 2011. Volkswagen was able to remain No.1 on the Belgian market despite the
withdrawal of the CO2 incentives at 31 December 2011, which has particularly
affected this make as well as Seat. Thanks to reduced supply delays, Audi
achieved a great quarter and remains the leading make in the premium segment
with a quarterly market share of 6.20%. Finally, all of koda's models have
performed well, with the exception of the Fabia, which has also been impacted
by the withdrawal of the government incentives. At end-April, the makes
distributed by D'Ieteren Auto reached a cumulative market share of 21.93%,
higher than the record market share of 2011.
Registrations of new light commercial vehicles in Belgium reached 16,538 units
in the first quarter, down 9.8%, mainly due to the adverse economic
environment. D'Ieteren Auto's quarterly market share in this segment grew to
12.93%, largely exceeding the FY 2011 market share (11.07%). This growth is
notably due to a very good positioning of the vehicles range and a dynamic
Total new vehicles, including light commercial vehicles, delivered by D'Ieteren
Auto in the first quarter were nearly flat at around 38,400 units. New vehicles
sales were up 10.4% (+7.5% at constant consolidation perimeter(1)), reflecting
a favourable mix as the withdrawal of the CO2 incentives mostly affected the
small cars segment.
Sales of spare parts and accessories, of used vehicles(1) and of the D'Ieteren
Car Centers' after-sales activities were up. Sales at D'Ieteren Sport were down
in a slightly declining market.
Considering all available information, Febiac expect a decrease of the
new car market by 15.2% to 485,000 new car registrations in 2012. On this
basis, D'Ieteren Auto pursues its objective of annual market share growth. This
year will see a number of models launched or revamped: the Volkswagen Jetta
Hybrid, the koda Citigo, the Seat Mii and the Porsche 991 Convertible.
2. VEHICLE GLASS REPAIR AND REPLACEMENT (VGRR) - BELRON
Sales for the first quarter of 2012 were 8.1% lower than 2011 due to an 10.6%
organic decrease partially offset by 0.8% acquired growth and a 1.7% positive
currency translation effect. First quarter repair and replacement jobs of
2.6 million were down by 11% compared to 2011.
In Europe, first quarter sales were 16.5% lower than 2011, consisting of
a 17.7% organic decrease partially offset by a 0.8% acquired growth and a 0.4%
positive translation effect. The organic sales decrease was due to market
declines in the majority of countries as a result of exceptionally mild weather
since last November and the weak economic environment. Market shares in Europe
have improved compared to last year. The acquired growth is predominantly due
to prior year acquisitions in Russia.
Outside Europe, sales growth during the first quarter was 3.5%, consisting of
0.8% organic decline offset by growth from acquisitions of 0.7% and a 3.6%
positive translation effect. The small organic decline primarily reflects the
exceptionally warm US winter weather, largely offset by share gains. The
translation impact is due primarily to the stronger US dollar.
The exceptional market declines in the first quarter have had a
disproportionate impact on the profitability of the period. In light of these
market conditions, management have taken a number of actions to reduce costs
and stimulate revenue which will impact the following quarters' results. Full
year unusual costs of circa 12 million EUR are expected to be incurred in
relation to restructuring activities which have been implemented. In addition,
6 to 8 million EUR of unusual costs are expected to be incurred in relation to
the Canadian acquisition programme.
As expected, the trading outlook for the remainder of the year remains
challenging due to continuing weak market conditions although less severe than
in the first quarter.
Belron remains committed to delivering outstanding service to its customers,
its insurance and fleet partners, and improving its operational efficiency.
CONSOLIDATED FINANCIAL POSITION
Total sales of the two activities were down 2.6% in the first quarter (-0.3% at
constant consolidation perimeter(1)). The current consolidated result before
tax, group's share, was down 61.6% (-60.6% at constant consolidation
Compared to 31 March 2011, the consolidated net financial debt has strongly
decreased following the sale of Avis Europe in October 2011 and the
deconsolidation of D'Ieteren Lease after the creation of Volkswagen D'Ieteren
Finance. Excluding these two elements, the consolidated net financial debt is
OUTLOOK FOR FY 2012 CURRENT CONSOLIDATED RESULT BEFORE TAX, GROUP'S SHARE (2)
Given the current outlook of its activities as well as the uncertain economic
environment, D'Ieteren still expects its 2012 current consolidated result
before tax, group's share, to decline by around 25% compared with an
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.
(1) D'Ieteren's accounts present Volkswagen D'Ieteren Finance as an entity
accounted for using the equity method, following the creation of this joint
venture between D'Ieteren and Volkswagen Financial Services in early 2012. The
data at constant consolidation perimeter include a restatement of the results
for 2011 at D'Ieteren Auto, so that both trading periods can be compared
(removal of the sales at D'Ieteren Lease, attribution of the sales of used
vehicles from defleeting to the entity accounted for using the equity method,
and recognition of the sales of D'Ieteren Auto to D'Ieteren Lease).
(2) Following the creation of Volkswagen D'Ieteren Finance, whose results are
accounted for using the equity method, and in order to reflect all the group's
activities, the current result before tax, group's share, from now on includes
the group's share in the current result before tax of the entities accounted
for using the equity method. For 2012, this change will lead to an estimated
decrease in the current consolidated result before tax, group's share, of
Forward looking statements
This document contains forward-looking information that in volves risks and
uncertainties, including statements about Dieteren'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 con trol of Dieteren. 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, Dieteren does not
assume any responsibility for the accuracy of these forward-looking statements.
End of press release
D'Ieteren is a group of services to the motorist founded in 1805, serving some
13 million corporate and end customers in 33 countries in two areas:
- Dieteren Auto distributes Volkswagen, Audi, Seat, koda, Bentley,
Lamborghini, Bugatti, Porsche and Yamaha vehicles across Belgium. It is the
country's number one car distributor, with a market share of around 22% and
more than one million vehicles of the distributed makes on the road. Sales in
2011: 3.2 billion euro.
- Belron (92.7% owned) is the worldwide leader in vehicle glass repair and
replacement. 2,000 branches and 9,200 mobile vans, trading under more than 10
major brands including Carglass, Autoglass and Safelite AutoGlass, serve
customers in 33 countries. Sales in 2011: 2.8 billion euro.
31 May 2012 - General Shareholders' Meeting
4 June 2012 - Ex date
7 June 2012 - Payment date
28 August 2012 - 2012 Half-year results
8 November 2012 - Interim Management Statement
Jean-Pierre Bizet, Chief Executive Officer
Benoit Ghiot, Chief Financial Officer
Vincent Joye, Financial Communication - Tel: + 32 (0)2 536.54.39
E-mail: firstname.lastname@example.org - Website: www.dieteren.com
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-0- Oct/24/2012 12:36 GMT
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