Tuesday Ticker: June 22, 2020
Uptick for Uni-Select
Uni-Select says it has experienced a “better than anticipated” operating performance in recent months, with sales for April and May as well as cash management better than internal forecasts set by the company in late March.
The company said the steps it’s taken in recent months have stabilized the business and are now allowing it to focus on its Continuous Improvement Plan that was announced prior to the pandemic.
Uni-Select’s Performance Improvement Plan, which began in 2018 and was completed in the first quarter of 2020 generated $53 million in annualized savings. The company expects to record restructuring and other one-time charges of approximately $20 million 2020 mainly due to right-sizing initiatives.
“Despite the challenges related to the COVID-19 crisis, the focus and commitment of our teams have been unwavering,” said Brett Windom, president and CEO of Uni-Select in an online release. “We could not be more proud of what we have accomplished so far and we are confident we will deliver on the Continuous Improvement Plan as we did the previous plan.”
Boost from Boyd
Last week, Winnipeg, Man.-based Boyd Group Services announced a cash dividend for the second quarter of 2020 of $0.138 per common share.
The dividend will be payable on July 29, 2020, to common shareholders of record at the close of business on June 30, 2020.
Reused, revived
The used vehicle market is in full recovery mode, according to J.D. Power’s June 2020 Used Car and Light Truck Industry Update.
The automotive industry analyst said wholesale auction prices are improving, with an average 6.5 percent price increase in the month of May.
The rate of improvement is expected to slow due to an anticipated rise in wholesale supply in June and July, though prices are expected to steadily recover over the remainder of 2020.
“[Prices are expected to] finish the year down by approximately two to four percent versus 2019,” said David Paris, executive analyst at J.D. Power Valuation Services.
Click here for more information on J.D. Power’s Guidelines PLUS+ Reports.
