Over the Counter: March 2002

Carquest Sales Force Earns ASE Recognition

The Carquest North American Sales Force has earned the ASE Blue Seal of Excellence recognition.

The Institute for Automotive Service Excellence (ASE) gives the Blue Seal to organizations that have at least 75% ASE-certified representation. The Carquest North American Sales Force holds a total of 415 ASE certifications and joins the Carquest Technical Institute in being recognized as ASE Blue Seal approved.

ASE offers certifications for a number of professions within the automotive aftermarket, including technicians, machinists, bodyshop professionals, and parts specialists. More information can be found at www.asecert.org.

Uni-Select and Acklands Complete Partnership Deal

Uni-Select and Acklands-Grainger have completed their joint-venture partnership deal and have begun rolling out programs to the distribution network.

The deal, which sees the creation of USI AGI Prairies Inc., effectively puts Uni-Select in management control of the Bumper to Bumper organization, though management and staff of both organizations are still very much involved in operational activities. Uni-Select and Bumper to Bumper jobber networks are being retained.

On October 1, 2001, Uni-Select and Acklands-Grainger announced they had agreed to the formation of a joint venture combining Uni-Select’s Western Division and Acklands-Grainger automotive aftermarket division operating as Bumper to Bumper. It was announced at the time that each would have a 50% stake in the business and that the companies would combine their product offerings and trademarks. Annual revenues for the new company are expected to be $120 million.

Genuine Parts Reports Modest Automotive Growth, Overall Decline

Genuine Parts Company, the U.S.-based owner of Canadian distribution company UAP Inc., reports that automotive parts sales were up in 2001, though overall sales dropped 2%, with net income dropping 6%.

Sales and earnings for the year ended December 31, 2001 were $8.22 billion U.S., a 2% decrease compared to 2000 sales of $8.37 billion. Automotive Parts, the company’s largest segment, experienced modest growth in 2001 with sales increasing 2%. All figures are in U.S. dollars.

The Office Products Group had sales growth of 3% in 2001. The Industrial Parts Group and the Electrical/Electronic Group reported sales decreases of 5% and 30%, respectively.

Net income for the company, excluding non-recurring items, decreased 6% to $362 million, down from $385 million recorded in the prior year. Diluted earnings per share for 2001, excluding unusual items, were $2.08 versus $2.20 per share in 2000, a decrease of 5%. After unusual items, diluted earnings per share for 2001 were $1.71 per share, a decrease of 22%.

Canadian Tire Reports Strong 2001, Plans to Improve in 2002

Canadian Tire Corporation, Limited has reported that its 2001 results showed strong results virtually across the board.

Unaudited 2001 consolidated net earnings were up 19.3% to $176.7 million, or $2.25 per share, compared to $148.0 million or $1.89 per share recorded in 2000. Consolidated net earnings for the fourth quarter were up 28.8%, to $41.0 million or $0.53 per share compared to $31.9 million or $0.41 per share a year earlier. Retail sales in 2001 increased 6.9% and comparable store sales increased 2.2%. All figures in Canadian dollars.

Of note to the aftermarket, the company reported its PartSource chain of 30 stores achieved double-digit growth in comparable store sales.

The company also opened 37 new-format stores, including nine incremental stores, for a total of 270 new-format stores opened since this program began in 1994, bringing Canadian Tire’s total store count to 450.

NGK Sales Winner

Marcel Longpre, NGK district manager from Montreal, Que., has been named “NGK Platinum Producer” for 2001.

Longpre has been with NGK for 13 years and is very respected by his fellow employees and by the customers he serves. The announcement was made by Robert Tribe, national sales & marketing manager, NGK Spark Plugs of Canada.

Longpre was also recently awarded manufacturer’s representative of the year by some of his major accounts for his outstanding service and performance in 2001.

ASE Registration Deadline is March 28. Register on-line at www.asecert.org.

Corteco, the automotive aftermarket business of Freudenberg-NOK, has announced that it has signed a three-year sponsorship deal with Al Unser Jr. in the Indy Racing League. Freudenberg-NOK, the supplier of original-equipment automotive gaskets and seals, will sponsor Unser in a car fielded by the Kelley Racing Team.

Tenneco Automotive has announced a major promotional safety campaign for its Monroe ride control products. The consumer and trade campaign includes television buys in Canadian hockey broadcasts and World Cup speed skating as well as U.S. sports events.

APPOINTMENTS

Eric Axiak, PartSource wholesale national sales manager, has announced the addition of Doug Shaw to the PartSource wholesale team. As a result of continued growth opportunities, Shaw becomes PartSource’s second area sales manager (ASM) in the Edmonton market. He will work with current ASM Geoff Freda to continue PartSource’s wholesale business development within its Edmonton stores. Shaw has over 20 years experience in the automotive industry including sales, service, and operations with various OEMs in Edmonton and Regina.

Terry Bax, president of Tribax Sales Inc., has announced the addition of Scott Jamieson to their sales team. Jamieson brings with him over 30 years’ experience in the aftermarket.

AFTERMARKET EVENTS

April 7-12–Univ. of the Aftermarket Leadership 2010 – Session I, Columbus, Ohio.

April 10-11–Lordco Parts Ltd. Trade Show, Pacific Coliseum, PNE Grounds, Vancouver, B.C.

April 14-17–Battery Council International Convention, Peabody Hotel, Orlando, Fla.