Uni-Select Q3 revenues up 15 per cent despite economic softness in Canada

BOUCHERVILLE, Que. – Automotive paint and parts company Uni-Select says its revenue increased 15 per cent to US$318.5 in the third quarter compared with $276.2 million a year ago despite slow growth in Canada.

The Quebec-based company says acquisitions boosted U.S. revenue by 25 per cent to US$202.2 million, while Canadian revenue grew by 1.9 per cent to US$116.3 million.

Uni-Select (TSX:UNS), which reports in U.S. dollars, said it earned $17.3 million or 41 cents per share during the three months ended Sept. 30. That compared with a profit of $15.7 million or 37 cents per share in the same quarter a year earlier.

Organic sales not coming from acquisitions fell 1.3 per cent, mainly due to economic challenges affecting its parts segment.

Uni-Select distributes automotive refinish and industrial paint products across North America and aftermarket auto parts in Canada.

The company sold its U.S. parts distribution operations last year to an affiliate of Icahn Enterprises for US$340 million.

“Organic sales results were below our expectations, as a result of softer economic conditions in our Canadian business and a product line changeover in our U.S. business,” Uni-Select chief executive Henry Buckley said in a statement.

“We remain highly focused on delivering profitable growth and extending our market share through our growth initiatives and by acquiring and integrating those select acquisitions.”