Belron Reports Third-Quarter Growth of 6 Percent; Officials Say Both U.S. and European Auto Glass Markets are Shrinking

Belron S.A. reported yesterday that it achieved sales growth of around 6 percent during the third quarter of 2008, consisting of 6 percent organic growth, 5 percent acquired growth, offset by a 5 percent adverse currency impact. The findings were announced as part of a report made by Belron's parent company, D'Ieteren, about the third quarter of 2008.

Year-to-date, Belron has achieved sales growth of about 7 percent, consisting of 6 percent organic and 7 percent acquired growth, offset by a 6 percent adverse currency impact, mainly due to the weak Sterling and U.S. dollar against the Euro.

Total repair and replacement jobs for the company grew by around 10 percent during the third quarter and around 11 percent year-to-date.

During the third quarter, in Europe, after both acquisition and currency translation, reported sales growth was around 5 percent, consisting of 8 percent organic growth offset by a 3 percent adverse currency impact. Year-to-date, sales grew by around 3 percent, which comprised organic growth of 7 percent, offset by an adverse currency impact of 4 percent due to the weak Sterling, according to the statement issued by the company.

D'Ieteren reports that its Belron locations in every country have recorded year-on-year organic growth in sales. During the third quarter, outside Europe, after both acquisition and currency translation, reported sales growth was around 7 percent, consisting of 2 percent organic and 12 percent acquired growth, offset by a 7 percent adverse currency impact. Year-to-date, sales growth amounted to around 12 percent, 16 percent of which the company attributes to its acquisition of Safelite in March 2007 and Diamond Glass in July 2008. The negative balance of 4 percent arose from organic growth of 4 percent, offset by an adverse currency impact of 8 percent, due to the weak U.S. dollar, company officials say.

"In common with Europe, challenging conditions served to reduce the size of vehicle glass repair and replacement markets," reads the report.

The company, which serves as the parent company of Belron US, reports that the integration of Diamond Glass into the latter company is "progressing well, with expectations of positive benefits to overall performance from early 2009."

Additionally, in November, Belron completed the acquisition of Mobilglas Denmark for approximately 4.8 million Euros (approximately $6 million U.S. dollars).