Saturday, October 25th8.6°C
23888
22501

Uni-Select beats expectations by swinging to US$15.5 million Q2 profit

MONTREAL - Uni-Select said Wednesday it will focus on boosting sales for the rest of the year after the automotive parts distributor swung to a US$15.5-million profit in the second quarter.

The Quebec-based company, which reports in U.S. dollars, said the profit amounted to 73 cents per share compared with a loss of $9.3 million or 43 cents per share a year ago when it was hit by a $35.2-million restructuring charge.

Excluding one-time adjustments, Uni-Select (TSX:UNS) earned $16.5 million or 77 cents per share for the period ended June 30, up from $15.6 million, or 72 cents per share a year earlier.

Revenue from Uni-Select's operations in Canada and the United States increased to $478.7 million from $476.2 million last year.

Uni-Select was expected to record 73 cents per share in adjusted profits on $464.6 million in revenues, according to analysts polled by Thomson Reuters.

"While the sales growth recorded in the second quarter was softer than expected, we are pleased with our overall performance and more particularly with our continued ability to lower costs and improve profitability, which are key drivers of our long-term growth plans," stated president and CEO Richard Roy.

He said its cost-cutting plan has made the company more competitive.

Uni-Select said the action plan remains on schedule to save $5.6 million in costs and reduce inventories by $7.6 million in the second-half of the year.

Roy said Uni-Select's main focus in the rest of the year is to accelerate sales while focusing on initiatives that will strengthen its relationship with independent wholesalers.

Organic growth during the quarter increased by 6.8 per cent in Canada and 1.3 per cent in the United States.

Benoit Poirier of Desjardins Capital Markets said the consolidated organic growth of 2.9 per cent was less than the 3.5 per cent increase he forecast.

However, he described the results as "encouraging," saying they demonstrate that its action plan is bearing fruit.

The company also announced Wednesday the creation of a chief operating officer position, but did not say who would fill the job that will report to Roy.

On the Toronto Stock Exchange, Uni-Select's shares lost 60 cents or 2.3 per cent at C$25.50 in Wednesday afternoon trading.

Follow @RossMarowits on Twitter

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14543.82+56.99
S&P CDNX805.45-3.15
DJIA16805.41127.51
Nasdaq4483.715+30.923
S&P 5001964.58+13.76
CDN Dollar0.8901-0.0003
Gold1231.20+2.10
Oil81.02-0.73
Lumber336.40+6.80
Natural Gas3.631+0.009

 
Okanagan Companies
Pacific Safety0.105-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.15-0.02
Cantex0.07+0.015
Anavex Life Sciences0.194-0.004
Metalex Ventures0.045+0.005
Russel Metals33.39+0.23
Copper Mountain Mining2.03-0.05
Colorado Resources0.145+0.005
ReliaBrand Inc0.012-0.001
Sunrise Resources Ltd0.05-0.01
Mission Ready Services0.445+0.035

 



23825

FEATURED Property
2083931#9 3365 Casorso Road,
$384,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...


We can get on together

I was in LA this week. I witnessed such crazy and unusual circumstances as I strolled along Hollywood Blvd and Sunset Blvd. A far cry from sleepy Peachland in the Okanagan! The strange thing was, I f...


Weakening global growth worries

The Big Picture Growth worries persist Worries about weakening global growth and its potential impact on the US economic recovery roiled markets around the globe this week. Europe continues to be the ...

_








Member of BC Press Council


22771