An unusual fact occurred in these times of economical crisis/recession concerning the car service group D’Ieteren. The group is responsible for distributing cars in Belgium such as Volkswagen, Audi and Seat. The car service group had a spectacular descending profit in 2009. The net profit of the year 2009 was 158,5 million euro compared to 32,2 million in 2008. This remarkable profit was caused by a big change in their bookkeeping. They made a huge depreciation on their investment in car renting daughter Avis Europe in 2008 which had a huge impact on their result at the end of the year.
The touchstone that is most frequently used in this group is the result before taxes. In 2009 this was 214,2 million euro. That’s a growth of 12 percent! The turnover however decreased by 3,6 percent.
D’Ieteren also increased their interest in Belron, a daughter of the group that contributed 150,4 million euro to the result due to the good weather.
I think that this is positive progress for D’Ieteren. However the depreciation gives profit that was not realised. The group itself may have done a better job but that is not completely the cause of the increased profit. To get a clear view, the assignment is to follow the groups evolvement and investigate if the group’s profit is still increasing in a range of 5 years.
http://trends.rnews.be/nl/economie/nieuws/bedrijven/nettowinst-d-ieteren-vervijfvoudigd-in-2009/article-1194671454272.htm#
First of all, the good Belron results weren't because of 'the good weather', as you obviously mentioned in your text. It's even the opposite, this division did better than expected because of the cold winter. These kind of weather conditions have a negative effect on the glass of cars because of the freezing condensation inside small ruptures in it.
BeantwoordenVerwijderenNext to that, you forgot to mention another division of D'Ieteren, namely the short term car rental division Avis Europe. This division also underwent the impact of declining markets.
I think D'Ieteren can be a really good middle term investment when we take a look at the ameliorating vehicle market conditions together with the success of the Belron division.
You obviously know more about the company than me so I believe you whatsoever! But this is what was in my article. Except for the last paragraph I wrote. I'm talking about not-realising the profit, but there is no extra profit, there's a loss due to the depreciation. Excuse me!
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