True Value revenue down 3.9 percent
Chicago-based True Value reported sales of $478.5 million for the third quarter, down 3.9 percent from $497.9 million for the same period in 2006.
The co-op reported a net margin of $12 million, down 34.4 percent from $18.3 million a year ago. Net margin is a measurement of net earnings specific to the co-op model.
The prior year’s net margin included a $6.3 million one-time gain due to a legal matter. Excluding last year’s nonrecurring gain, year-to-date net margin was down 2.5 percent.
The company saw a 1.6 percent growth in warehouse shipments to True Value retailers. The company blamed sales declines in part on the timing of its annual fall market, held Oct. 30 within the fourth fiscal quarter. Revenue and profit from market activities benefited the third quarter in 2006 but will benefit the fourth quarter in 2007.
Third-quarter profit levels were in line with the company’s plan, True Value said in a statement.
True Value had sales of $2 billion in 2006. The co-op includes approximately 5,500 independent retailer locations under banners including True Value, Grand Rental Station, Taylor Rental, Party Central, Home & Garden Showplace and Induserve Supply.