CHIEF EXECUTIVE officer of Hardware and Lumber Limited A. Anthony Holness reported group revenues of $5.333 billion for 2005, a decrease of $186 million or 3% compared to 2004.
The net profit attributable to stockholders decreased from $169 million in 2004 to $67 million. The earnings per share for the year was $0.88 compared to $2.51 for 2004.
Mr Holness said that the company's financial performance was negatively impacted by a combination of factors throughout the year, commencing with the bad weather conditions in the second quarter, which included the passage of three hurricanes. The weather conditions resulted in temporary closure of several major construction sites, which in turn impacted the demand for construction inputs. Additionally, Mr Holness stated that unlike Hurricane Ivan, there were no residual benefits to the business associated with hurricane damages. Economic slowdown along with the devaluation of the dollar and increases in cost of utilities also affected the business in 2005, and the shortage of cement at the end of year contributed to an overall disappointing performance.
MORE EFFICIENT STRUCTURE
The wholesale division will now focus on servicing large construction projects and will continue to secure solid support from the distributive trade largely because of its superior delivery service, product range and overall excellent customer service.
The roll out of the new management information system, a key business innovation is scheduled for completion in April 2006. Mr Holness stated that with the implementation of the new IT system, cost rationalisation will result in significant savings, which will accrue in the second quarter of 2006.
Looking to the future, Mr Holness said that the opening of the new 30,000 square foot Rapid True Value home improvement and hardware store in Ocho Rios signifies the company's commitment to the expansion of the retail brand and that there will be continued focus on exploring other areas of opportunities in order to strengthen market presence.
