Tuesday, September 30th12.0°C
22738
23502

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 TSX15020.23+43.311
S&P CDNX909.50-3.26
DJIA17114.0942.87
Nasdaq4513.965+8.112
S&P 5001980.75+2.95
CDN Dollar0.8933-0.0026
Gold1208.30-10.50
Oil91.75-1.03
Lumber332.00+3.10
Natural Gas4.117-0.037

 
Okanagan Companies
Pacific Safety0.13-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.23+0.01
Cantex0.090.00
Anavex Life Sciences0.1850.00
Metalex Ventures0.0550.00
Russel Metals34.65+0.16
Copper Mountain Mining2.51-0.01
Colorado Resources0.150.00
ReliaBrand Inc0.025+0.005
Sunrise Resources Ltd0.065+0.045
Mission Ready Services0.335-0.005

 



23375

FEATURED Property
20422381214 Mission Ridge Road
5 bedrooms 4 baths
$1,698,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Power-save your way to a down payment

Part 2 of 2 to read Part 1, click here. 5. Dial down your vacations. New York is out. Maybe Buffalo. For West coast, maybe Seattle instead of Hawaii. Use sites like Airbnb (aribnb.ca) to find ch...


A wildly successful manufacturer

Niche food producer “Sweets from the Earth” thrives using innovation, uniqueness and an unwavering focus on quality. A neighbour’s stew turned Ilana Kadonoff off meat at the age of s...


Finding the smart money

Recently I had the privilege of working alongside André Voskuil, a local guru in the world of Alternative Financing. André has quite the reputation in the world of direct investments as ...

_








Member of BC Press Council


22496