For the first nine months of 2006, Thule reported a 25.7% increase in sales to SEK2,998 million ($401.8 mm) from SEK2,384 million ($327.5 mm) last year. On an organic basis, the company reported a 9.5% sales increase for the period. During the period, Thule received approval from EU anti-trust authorities for the acquisition of Brink International, SportRack Accessories, and Valley Industries. The acquisition of SportRack is expected to add over $18 million in revenues to Thules North American operations.
As part of the integration, Thule will lay off 33 employees, the majority of which work in production at its SportRack facility in Granby, Quebec, Canada. The decision to downsize is due in part to plans to transfer some of the manufacturing of SportRack products to its Seymour, Conn., and Chicago, Ill. facilities. Thule met individually with each of the affected employees. In addition to the 8 weeks of notice required by applicable law, Thule is offering exit packages to the employees who stay through the end of the notice period.
The company expects a decision on its pending acquisition of the Austrian company Pewag Schneeketten at some point during the fourth quarter.
Thules North American division reported sales of $60.9 million, an 8.6% increase over last years sales of $56.1 million. This includes SportRack sales of $800,000. The core Thule branded product had “close to double digit sales growth.” The sports distribution channel was described as “performing well,” while the automotive channel continues to be affected by higher gas prices.
Total company operating profit jumped 33% to SEK 415 million ($55.6 mm) from SEK 313 million ($43.0 mm) last year. Adjusting that line for currency and acquisition effects, still nets the company an increase of 10.5%.
