True Value Corp. reported revenues of $448.9 million for its third fiscal quarter, an increase of 0.7% from revenues of $445.7 million for the same period in fiscal 2011. The Chicago-based co-op posted a quarterly net margin of $15.4 million for the third quarter, versus $18.1 million a year ago, a decrease of 14.9%.
For the nine months ending Sept. 29, True Value reported revenue of $1.43 billion, an increase of 0.7% from $1.42 billion for the same period a year ago. Comparable-store sales to core domestic hardware store outlets were up 2.5% in the nine-month period. The 2012 year-to-date net margin was $45.8 million, down 4.4%, or $2.1 million, from $47.9 million one year ago.
True Value president and CEO Lyle Heidemann said the revenue increase is due to strong sales in the farm and ranch category, the company’s partnership with Benjamin Moore, and strong increases in True Value’s manufactured proprietary paint brand sales.
“Partially mitigating these gains was the lack of winter weather business in the first quarter, not repeating Hurricane Irene-related sales in the third quarter and a modest year-to-date net decline from retailer attrition,” Heidemann said. “We did, however, experience an increase in revenue in the third quarter from net gains in membership.”
On Oct. 26, True Value received $18.0 million ($16.5 million net of legal fees) as a settlement of an ongoing litigation matter. The net proceeds will be recorded as a gain in True Value’s fourth-quarter financial results.