Keystone Automotive Operations, Inc. second quarter 2008 results show an almost 4 percent dip in sales and less than 1 percent gross-profit decline. A leading distributor and marketer of aftermarket accessories and equipment, Keystone saw net sales for the second quarter dip to $165.8 million, a decrease of $6.8 million compared to $172.6 for the same period in 2007. The decrease, which fell mostly in the last month of the quarter, ending June 28, was driven by a combination of factors including less consumer spending on discretionary items because of higher gas prices, general economic uncertainty and a year-over-year decline in truck and SUV sales. Gross profit for the quarter was also down, coming in at $52.3 million versus $52.6 million seen in the second quarter 2007.
Keystone did, however, record a net income of $1.3 million, up $0.5 million from the same time last year. The improvement stemmed from a decrease in interest expense and an increase in other income, partially offset by a gross profit decrease and a hike in sales, tax, general and administrative expenses. “Given the overall industry sentiment and general economic environment, we are pleased to report an increase in gross margin and net income,” says Ed Orzetti, Keystone’s chief executive officer. “We believe our second quarter performance versus overall industry trends indicate Keystone is gaining in market share driven by outstanding customer service and superior inventory availability. We remain focused on operating the company in a prudent manner during these challenging times and also on building our business for the long-term through continued market share gains and, where available, attractively-priced acquisitions, joint ventures, or asset purchases from competitors more challenged by market conditions.” For more information, visit Keystone online. |
