Business
Richelieu pursues its solid growth and strategic developments in the second quarter
Richelieu pursues its solid growth and strategic developments in the second quarter.
About this update from Richelieu Hardware Ltd
[{"type":"text","content":"\n\n\n\n\n42nd consecutive quarter of sales and net earnings growth\n---------------------------------------------------------\n\n- Increase of 16.2% in net earnings\n- Increase of 10.9% in sales which exceed $100 million for the quarter\n- Excellent financial position: almost no debt, working capital of \n $107.7 million and cash of $4.7 million\n- Launch of the \"Closet Solutions\" program and the new kitchen \n \"Solutions\" program; reaching of two exclusive distribution agreements \n (Canada and North America) \n- Payment of next dividend ($0.06 per share) on August 2, 2006 to \n shareholders of record as at July 19, 2006\n\nTSX: RCH\n\nMONTREAL, July 5 /CNW Telbec/ - Richelieu announces its results for the\nsecond quarter and first six months ended May 31, 2006. \"We are pleased with\nour results in regard to sales growth in Canada and the United States as well\nas net earnings. We focused on integrating our recent acquisitions, which\nbrought a good contribution to the increase in our distribution sales, arising\nalmost equally from acquisitions and internal growth. We benefited not only\nfrom our acquisitions, but also from the marketing initiatives taken in 2005-\n2006 to optimize our customers' sales. Moreover, our transactional website,\nwhich has featured new functions since April 1, 2006, is posting steady growth\nin online sales. The second quarter also gave rise to product mix developments\nwith two exclusive distribution agreements that will yield tangible benefits\nin the coming periods,\" indicated Richard Lord, President and Chief Executive\nOfficer.\n\nOperating results for the second quarter ended May 31, 2006\n-----------------------------------------------------------\n\nConsolidated sales exceeded $100 million to total $102.6 million in the\nsecond quarter, up 10.9% over the corresponding period of 2005. Of this\nincrease, 5.8% was internal growth and 5.1% came from the acquisitions made in\nthe first quarter, specifically Atlantic Countertops (Nova Scotia), acquired\nin December 2005 (a distributor of hardware products and materials for\nfurniture and kitchen cabinet manufacturers), Nystrom Group (Ontario),\nacquired in February 2006 (a distributor of decorative products and bathroom\naccessories for the retailers market, including renovation superstores), and\nKiika International (Pennsylvania, U.S.), a...