Rona posts deeper loss on charges, tough conditions
(Reuters) - Canada's top home improvement retailer and distributor, Rona Inc RON.TO, reported a deeper quarterly loss on Tuesday as it grappled with restructuring charges and difficult market conditions.
Rona, under pressure from investors to improve its financial results, also said it has decided to keep its big-box store network outside Quebec and will announce a "recovery plan" next quarter.
Chief Financial Officer Dominique Boies said in a statement that 2013 "is clearly a transition year for Rona, and further changes will be required to allow us to return to sustained growth in net income."
Boies said weakness in the Canadian housing market had hurt first-quarter results.
Rona said its adjusted net loss was C$22.7 million ($22.46 million), or 19 Canadian cents a share, compared with a loss of C$13.5 million, or 11 Canadian cents a share, a year earlier.
The results reflect adjustments of C$17.8 million, or 14 Canadian cents a share, for restructuring charges and costs related to turnaround efforts, the company said.
Rona, which has a new chief executive in charge of overhauling the company, said revenue dipped 0.5 percent to C$929.4 million. Sales at established stores declined 0.8 percent.
Rona, which fought off a C$1.8 billion hostile bid from Lowe's Cos Inc (LOW.N: Quote) last summer, outlined a three-year turnaround plan in February that included expanding its core distribution business.
($1 = 1.00 US dollars)
(Reporting by Susan Taylor; Editing by Gerald E. McCormick and John Wallace)
© Thomson Reuters 2017 All rights reserved.