BOUCHERVILLE, Que. - Auto-parts company Uni-Select Inc. (TSX:UNS) missed expectations as its net profit was cut nearly in half to US$4.65 million in the fourth quarter due to a rapid deterioration in the aftermarket business and challenges in implementing new IT software.
The Quebec-based company, which reports in U.S. dollars, earned 22 cents per share on $424.3 million of revenues, compared to 42 cents per share on $436.6 million of sales a year earlier.
Adjusting for one-time items, net income plummeted to $5.9 million or 27 cents per share, from $10.2 million or 47 cents per share in the year-ago period.
Analysts had expected Uni-Select would earn 39 cents per share in adjusted profits on $422 million of sales.
Uni-Select said the 2.8 per cent drop in quarterly sales was mainly due a temporary slowdown in the aftermarket business in the U.S. Northeast and in Eastern Canada, partially offset by acquisition-related sales in Florida and an extra day of activity.
U.S. sales were $298 million while revenues in Canada totalled $126 million.
For the full year, the company earned $30 million or $1.39 per share on $1.8 billion of sales. That compared to $53.3 million or $2.47 per share on $1.78 billion revenues in 2011.
Adjusted profits decreased 19 per cent to $46.5 million or $2.15 per share.
Higher sales from the United States were offset by decreases in Canada and the impact of the value of the Canadian dollar.
On the Toronto Stock Exchange, Uni-Select's shares were down 34 cents at C$23.45 in Thursday morning.