BOUCHERVILLER, Quebec — Uni-Select has reported sales of $362.7 million for the first quarter of 2009, an increase of 28.8 percent compared to sales of $282 million in 2008. The company said this increase in sales is primarily due to various acquisitions completed in recent quarters and to the increase in U.S. currency. Net earnings increased to $8 million in the first quarter of 2009 or 41 cents per share compared to $6.1 million or 31 cents per share last year, an increase of 32.2 percent. 
Sales for Uni-Select’s Automotive Group USA reached $233 million in the first quarter compared to $150 million in the first quarter of 2008. The acquisitions completed in recent quarters contributed $56.1 million, to which should be added the favorable impact of the exchange rate variation. The operating margin for the Group declined from 6.1 percent in the first quarter of 2008 to 5.5 percent. However, on a comparative basis, excluding the latest acquisitions whose integration is just underway, the margin is 6.3 percent an improvement of 0.2 percent over 2008 as a result of continued improvement programs on margins and cost reduction.
Automotive Group Canada reported sales of $118 million comparable to levels reached in the same quarter of 2008. The operating margin of the Group improved from 5.4 percent in the first quarter of 2008 to 6.7 percent this quarter. Automotive Group Canada benefited from the integration of synergies resulting from the acquisition of RPDL in 2008 and the continued improvement of operating margins throughout the network.
Sales for the Heavy Duty Group decreased by 8.6 percent in the first quarter of 2009 to reach $12 million compared to $13 million in 2008. The operating margin for the Heavy Duty Group was (11.6 percent) in the first quarter of 2009 compared to (8.6 percent) last year. This decrease in the margin stems essentially from the decrease in sales.
"We are pleased with the impact of the acquisitions and cost-reduction programs implemented in recent years. While they have only just begun to contribute, we are already beginning to see the potential in both Canada and the U.S., from recent acquisitions. As is our practice, we will have to ensure that all synergies are achieved before their full value is realized," said Richard Roy, president and chief executive officer of Uni-Select Inc. "During the next quarters, the results of our Canadian and U.S. operations should continue to benefit from the contribution of various acquisitions completed in recent quarters. We will continue to seek out growth opportunities in Canada and the U.S., all the while keeping a firm control on assets. This may result in the sale or closure of stores in Canadian and U.S. areas with low growth potential. Furthermore, the reduction in asset base will also entail the orderly reduction of inventory," added Roy.
