Business
Richelieu announces its Q4 and 2009 financial results and a 12.5% increase in the dividend
Richelieu announces its Q4 and 2009 financial results and a 12.5% increase in the dividend
About this update from Richelieu Hardware Ltd
[{"type":"text","content":"\n\n\n\nJan. 28, 2010 (Canada NewsWire Group) -- MONTREAL, Jan. 28 /CNW Telbec/ -- In 2009, Richelieu's operations continued to generate substantial cash flows - the Company further strengthened its balance sheet and expanded its network which now comprises 50 centres in North America. In view of the economic crisis that caused a decrease in residential and commercial renovation spending in the United States, Western and Central Canada, Richelieu recorded a satisfactory financial performance, although its results showed a decline. The Company posted net earnings of $30.4 million or $1.38 per share on consolidated sales of $424.4 million for 2009, compared with net earnings of $35.6 million or $1.56 per share on consolidated sales of $441.4 million for the previous year.\"Our financial results attest to the validity of the strategy implemented in view of the economic crisis, specifically tight expense reduction measures, a focus on rigorous operational management and the efficiency of the integrated supply chain management for better inventory control and the optimization of customer service. Despite a more challenging environment, we continued to increase our market share and customer base throughout the year, which bodes well for our future growth once the economy further recovers,\" indicated Richard Lord, President and Chief Executive Officer of Richelieu.ANALYSIS OF OPERATING RESULTS FOR THE YEAR ENDED NOVEMBER 30, 2009 COMPARED WITH THE YEAR ENDED NOVEMBER 30, 2008For the year ended November 30, 2009, Richelieu recorded a performance that was all the more satisfactory since the year's difficult conditions caused a slowdown, among others, in the residential and commercial renovation industry, which is the Company's primary source of growth. The United States, Western and Central Canada were more affected by this downturn, whereas Eastern Canada was relatively less so, enabling Richelieu to achieve growth in this market. Despite this challenging context, the Company maintained a good business volume and recorded consolidated sales of $424.4 million for 2009, a decrease of 3.9% from the previous year, of which a 4.5% internal decrease, whereas the growth-by-acquisition was 0.6% (Top Supplies, Inc. (\"Top Supplies\"), North Carolina, acquired in April 2008 - Acroma Sales Ltd. (\"Acroma\"), British Columbia, acquired in July 200...