Riding out the weather, RONA posts sales decline
The one-two punch of bad weather and a weak economy took its toll on Boucherville, Quebec-based RONA’s second-quarter performance.
Canada’s largest distributor and retailer of hardware, renovation and gardening products posted second-quarter sales of C$34.2 million, down 2.4%. Same-store sales declined 9.6%. Net income amounted to C$39.5 million, down from C$66.3 million in the second quarter of 2010.
"For the second quarter in a row, very poor weather conditions, especially in April and May, and fragile consumer confidence significantly impacted our quarterly results," said Robert Dutton, president and CEO of RONA.
Across Canada, the months of March, April and May experienced poor weather conditions. In addition, RONA dealt with the absence of the home renovation tax credit at the beginning of the year.
Dutton pointed to "prudent" management through the first half. One example: The company increased penetration of its private-brand and controlled-brand products from 24% to 28%.
"Although there was less pressure on same-store sales in July, especially in Ontario, and sales in the kitchen and construction material categories were up sharply, we expect continued pressure on same-store sales overall until the end of the year in light of the fragile nature of consumer confidence in Canada and consumers’ careful approach to major renovation projects," Dutton said, in a prepared statement.
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In Sweden, Stanley buys shares of security firm Niscayah
New Britain, Conn.-based Stanley Black & Decker’s wholly owned Swedish subsidiary has acquired in total 72,005,890 class B shares of global security firm Niscayah Group.
The shares represent approximately 19.8% of the outstanding shares and approximately 13.9% of the total number of votes in Niscayah.
The acquisition of these shares was made through purchases outside of the company’s pending tender offer to acquire all the outstanding shares and warrants of Niscayah.
Stanley’s SBD Holding AB announced a public takeover offer to the shareholders of Niscayah in June.
Do you think it really was a
Do you think it really was a right time to have such a takeover of a security firm? By spending such a large amount of money to buy those shares, I can say that Stanley Black & Decker is making quite the gutsy move. I wonder if it will pay off in 2012.
China show expects to attract 35,000
More than 35,000 trade visitors from 85 countries are expected to fill out the China International Hardware Show 2011 in Shanghai. Some 2,400 exhibitors from around 20 countries and regions are also expected.
The Sept. 21 to 23 event, organized by Koelnmesse and the China National Hardware Association, is described as Asia’s leading trade fair for tools, DIY and building hardware, security systems and locks.
New this year, the show will present outstanding new products — selected by a panel of industry judges — in a 300-sq.-meter innovative Products Zone. "This special feature of high-quality hardware products aims to help buyers improve their sourcing efficiency in screening suitable manufacturers," CIHS said in a press release.
CIHS also said that it received an endorsement from the European DIY Retail Association (EDRA), which represents 90 major home improvement retailers in 50 countries. "This endorsement signifies a major leap in recognition by a prominent worldwide industry body and is expected to inject fresh interest from more overseas visitors," according to the show announcement.
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