Business
Richelieu increases its earnings in the second quarter
------------------------------------------------------------------------- Second quarter and firs...
About this update from Richelieu Hardware Ltd
[{"type":"text","content":"\n\n\n\n-------------------------------------------------------------------------\n\n Second quarter and first six months ended May 31, 2008\n ------------------------------------------------------\n\n- Net earnings amounted to $9.1 million, up 5.2%, or $0.40 per share for\n the second quarter. They totalled $15.7 million, up 7.5%, or $0.68 per\n share for the first six months of 2008.\n- Excellent financial position - the interest-bearing debt/equity ratio\n stood at 3.2% and working capital at $125.9 million, for a current\n ratio of 3.7:1.\n- Purchase of 324,800 common shares under the normal course issuer bid,\n for a cash consideration of $6.1 million.\n- Acquisition of a distributor in North Carolina closed on April 7, 2008.\n-------------------------------------------------------------------------\n\n\nTSX: RCH\n\n\nMONTREAL, July 9 /CNW Telbec/ - Richelieu achieved a solid performance in\nthe first six months of 2008, as its net earnings grew by 7.5% to\n$15.7 million or $0.68 per share, of which $9.1 million and $0.40 per share in\nthe second quarter. During the three months ended May 31, 2008, profit margins\nimproved over the corresponding quarter of 2007 and free cash flows continued\nto increase. The Company ended the period with working capital of\n$125.9 million and a strong financial position with an almost debt-free\nbalance sheet.\n\n\nIn the second quarter, Richelieu recorded appreciable internal growth in\nits Canadian markets, especially in the residential and commercial woodworking\nsegment and the retailers and renovation superstores market, mostly in Eastern\nand Western Canada. In the United States, although the overall business\nremained satisfactory despite the economic slowdown prevailing for several\nmonths, the negative effect of the exchange rate on U.S. sales converted into\nCanadian dollars could not be entirely offset. The Florida market was the most\naffected during the quarter and the Company is redoubling its development\nefforts with a more comprehensive product offering in this region.\nConsequently, U.S. sales declined in the second quarter, lowering total sales\nby 1.3% to $114.8 million for the second quarter. For the first six months,\nthey amounted to $210.9 million, remaining at the same level as in the first\nhalf of 2007.\n\n\n"We plan to increase our market share and cross-sel...