Business
Richelieu announces solid growth for its third quarter
Richelieu announces solid growth for its third quarter.
About this update from Richelieu Hardware Ltd
[{"type":"text","content":"\n\n\n\n-------------------------------------------------------------------------\n- Third-quarter sales totalled $111.9 million, an increase of 16.3%, of\n which 7.1% came from internal growth and 9.2% from acquisitions.\n\n- U.S. sales almost doubled (in U.S. dollars), with 76.4% coming from\n acquisitions and 15.5% from internal growth - accounting for 19% of the\n quarter's total sales.\n\n- Earnings per share increased to 0.39$, compared with 0.38$ for the same\n period in 2006.\n\n- Excellent financial position - the interest-bearing debt/shareholders'\n equity ratio stands at 6.6% and working capital at $120.0 million.\n-------------------------------------------------------------------------\n\nTSX: RCH\n\n\nMONTREAL, Oct. 3 /CNW Telbec/ - Richelieu achieved very satisfactory\ngrowth for its third quarter ended August 31, 2007, which represented its 47th\nconsecutive quarter of sales and earnings growth (over comparable periods).\nThe third quarter brought the strongest sales increase since the beginning of\nthe year, yielding sales of $111.9 million, up by 16.3% or $15.7 million,\nthanks to excellent internal growth of 7.1% and the four acquisitions closed\nin the past 12 months which generated 9.2% growth for the quarter.\n\n\nSales to manufacturers increased by 15.8%, of which 5.0% came from\ninternal growth and 10.8% from acquisitions. Sales to retailers including\nrenovation superstores were up by 19.2% due to significant growth in all\nproduct categories and the initial benefits of the agreement Richelieu\nrecently concluded with a major Canadian renovation chain, to whom it will\nsupply a line of functional hardware products over several years.\n\n\nIn Canada, the Company posted a solid performance in its three geographic\nmarkets, especially in Western Canada where economic conditions are\nparticularly strong. Its Canadian sales increased by 7.3%, due entirely to\ninternal growth. In the United States, its sales in U.S. dollars almost\ndoubled, with 15.5% coming from internal growth and 76.4% from acquisitions.\n\n\nFor the third quarter, Richelieu achieved an excellent EBITDA profit\nmargin of 13.9%, although it declined slightly from the corresponding quarter\nof 2006 when the EBITDA profit margin had been exceptionally high. This\nvariation is also due to the investments required to develop new sales in the\nr...