Annual impairment testing and profitability improvement measures / Update on group’s FY 2014 outlook / Early views on 2015

Summary 

  • In accordance with the requirements of IAS 36 “Impairment of Assets”, the annual review of goodwill and of intangible assets with indefinite useful lives has led to the conclusion that a non-cash impairment charge of EUR 98 million will be necessary in relation to the activities of Belron in the United Kingdom and in China.
  • In response to challenging market conditions, Belron has decided to invest in performance improvement initiatives in certain countries. This will result in the recognition of EUR 41 million of unusual restructuring costs at year-end.
  • At the end of November 2014, D’Ieteren Auto’s YTD sales were up 0.7%, whilst Belron’s YTD sales were up 1.3%, both confirming an improving trend compared with the first half of the year.
  • Based on the latest view on the remainder of the year, D’Ieteren expects its 2014 current consolidated result before tax, group’s share, to decline by slightly more than 10% compared to 2013 (previous guidance: a decline of approximately 10%).
  • Preliminary views on 2015, assuming similar underlying trends in the vehicle glass repair and replacement markets as in 2014 and adverse weather conditions, as well as a stable new car market in Belgium, indicate a current consolidated result before tax, group’s share, up in excess of 10% on 2014.

 

Conference Call 

The management will comment this press release and take questions during a conference call starting today at 9:00 am CET. The conference call can be attended by calling +32(0)2 404 0660 (Belgium) or +44(0)20 3427 1905 (UK), and using the following confirmation code: 6089151.

 

Group profile 

D'Ieteren is a group of services to the motorist founded in 1805, serving some 12 million corporate and end customers in 35 countries in two areas: 

- D'Ieteren Auto distributes Volkswagen, Audi, Seat, Škoda, Bentley, Lamborghini, Bugatti, Porsche and Yamaha vehicles across Belgium. It is the country's number one car distributor, with a market share of more than 21% and 1.2 million vehicles of the distributed makes on the road. Sales in 2013: EUR 2.6 billion. 

- Belron (94.85% owned) is the worldwide leader in vehicle glass repair and replacement. Some 2,400 branches and 8,600 mobile vans, trading under more than 10 major brands including Carglass®, Safelite® AutoGlass and Autoglass® serve customers in 35 countries. Sales in 2013: EUR 2.8 billion.

 

Financial Calendar 

Last five press releases

Next events

 

 

 

 

4 November 2014

Repurchase of own shares

26 February 2015

2014 Full-Year Results / Analyst meeting & press conference

23 October 2014

Repurchase of own shares

15 April 2015

Annual Report 2014

28 August 2014

2014 Half-Year Results

28 May 2015

General Meeting & Trading update

19 June 2014

Disclosure of major shareholdings

31 August 2015

2015 Half-Year Results / Analyst meeting & press conference

17 June 2014

Disclosure of major shareholdings

 

 

 

Contacts 

Axel Miller, Chief Executive Officer

Benoit Ghiot, Chief Financial Officer 

Thierry Dossogne, Financial Communication - Tel: + 32 (0)2 536.55.65

E-mail: financial.communication@dieteren.be – Website: www.dieteren.com 

Annual Report 2013 dedicated website: 2013.dieteren.com