Uni-Select has announced that second quarter profits for 2002 increased by 28.0%, with Automotive Group in Canada up 10.8%.
This puts profits for the quarter at $5,597,000 or $0.31 per share compared to $4,374,000 or $0.24 per share in the previous year.
Net profits for the six-month period ended June 30, 2002 reached $8,694,000 or $0.48 per share compared to $6,618,000 and $0.37 per share during the course of the preceding year. Sales in the second quarter were $183,804,000, an increase of 7.1% compared to sales of $171,656,000 realized in the second quarter of 2001. Sales reached $328,292,000 for the six-month period ended June 30, 2002, an increase of 5.9% compared to sales of $309,877,000 realized in 2001.
Sales for Automotive Group Canada increased by 10.8% during the course of the second quarter to reach $134,853,000. Organic growth for the group was 1.2% when compared to the same number of days as in the second quarter of 2001.
The remainder of the growth is attributable to the joint venture created in the Prairies on February 1st with Acklands-Grainger offset in part by a change in the estimate of rebates earned by our merchant members. The second quarter also included an additional billing day when compared to the same period in 2001. The operating margin of Automotive Group Canada in the second quarter was reported at 6.3% compared to 6.5% a year earlier, due to the lower margin on additional revenues of the new joint venture.
The contribution of Automotive Group USA to Uni-Select’s sales decreased by 4.9% to attain $35,031,000 compared to $36,584,000 in the same quarter of the preceding year. This decrease is organic. The decrease calculated in American currency was 7.2%.
This situation is largely due to the closing of certain accounts at the end of 2001 and in 2002 for credit reasons. Furthermore, certain accounts, unable to subscribe to our daily service due to their distance from our distribution centres, were also lost. However, several new clients have been recruited in the course of recent months, allowing us to anticipate a reversal of this negative tendency in the coming months.
Automotive Group USA’s operating margin in the second quarter was 4.4% compared to 4.6% last year. The Heavy-Duty Group enjoyed sales of $13,920,000 in the second quarter of 2002, an increase of 3.9% compared to sales of $13,402,000 in the corresponding period a year earlier.
This growth is essentially organic and would have been 2.3% had the same number of days been compared. The group increased its operating margin by 270% in the second quarter.
On an annual basis, the group will continue to improve its operating profit and expects to generate profit for the year with respect to both its operating and net profit.
“Our 2002 perspectives remain favorable”, said Jacques Landreville, president and chief executive officer. “Past mergers and acquisition efforts are bearing fruit in Canada where we continue to improve our business model. Furthermore, we are pursuing several mergers and acquisition opportunities in the United States. With respect to the Heavy-Duty Group, it is gaining market share and accentuating its profitability.”
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