By Robb M. Stewart
Richelieu Hardware’s earnings dropped in the second quarter after the strong market conditions it saw during the pandemic faded and in the wake of recent efforts to expand its operations.
The specialty hardware manufacturer and distributor reported a 35% fall in second-quarter net earnings attributable to shareholders to 30.7 million Canadian dollars ($23.1 million), or C$0.55 a share. The Montreal-based company said that reflected an increase in the amortization of rights-of-use assets related to business acquisitions, expansion projects and interest on its line of credit.
Earnings before interest, taxes, depreciation and amortization was down 21% on-year at C$61.5 million for the three-month period ending May 31.
Sales fell to C$472.1 million from $487.9 million last year, with a fall in sales in both Canada and the U.S. despite the company completing four acquisitions in Canada in the previous quarter. Richelieu closed acquisitions in Oregon and Minnesota during the fiscal second quarter as part of a focus on market penetration.
Write to Robb M. Stewart at [email protected]
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