Jul 5, 2005 - Higher sales boost Richelieu Hardware Q2 profit by 9%Back
Increased sales in both Canada and the U.S. boosted second-quarter profit for Richelieu Hardware Ltd. by more than nine per cent to $7.4 million, the company reported Tuesday.
Consolidated sales totalled $92.6 million, up 13.8 per cent or $11.2 million over the second quarter of 2004.
Earnings per fully diluted share were 32 cents, up three cents or more than 10 per cent over the same period a year ago.
Richelieu (TSX:RCH) said sales in Canada rose by 7.2 per cent to $81.7 million, while sales in the U.S. more than doubled to $10.9 million, fuelled by the acquisition of Allied Hardware and Allied Casework Supply last year.
The company said manufacturers accounted for 82 per cent of its sales, up from 79 per cent in the second quarter of last year, with hardware retailers, including renovation superstores, making up 18 per cent.
"The renovation market is still in growth mode and favoured residential and commercial projects," the company said in a release. "The office furniture market continued to solidly recover, while home furnishings showed satisfactory but less solid growth."
Montreal-based Richelieu manufactures, imports and distributes specialty hardware to both manufacturers and retailers. It operates 26 distribution centres in Canada and eight in the U.S., as well as two Canadian manufacturing plants.
The company said it plans to further expand in the U.S. market, where it concentrates exclusively on kitchen manufacturers and the architectural woodworking industry. Its ninth U.S. distribution centre is set to open soon in North Carolina.
Shares of Richelieu gained $1 to close at $23.50 on the TSX.
