The Coast Distribution System, Inc. reported a slight rise in reported net earnings despite a more than $9 million dip in net sales for 2008’s second quarter, in comparison to the same time last year. Coast is one of North America’s largest suppliers of aftermarket replacement parts, accessories and supplies for the recreational vehicle (RV), marine and outdoor recreation industries. Reporting net earnings of $1.6 million on net sales of $41.2 million for the second quarter of 2008, Coast comparatively returned $1.5 million on $50.8, respectively for the same period in 2007. A reported 11.5 percent year-over-year gross margin improvement over the corresponding quarter in 2007 was attributed to the strengthened Canadian dollar, improved pricing and increased sourcing of products from Asia. The 2008 second quarter marked the fourth consecutive quarter of gross margin improvement. But an 18.9 percent year-over-year decline in sales during the quarter was also reported, most likely impacted by decreased demand in the RV industry, thus affecting sales traffic to RV dealers, and decreased demand in the boating industry. "With economic uncertainties and higher fuel prices, it appears many would-be purchasers of RVs and boats are currently deferring big-ticket purchases. However, the RVIA has indicated that it expects RV sales to stabilize by early 2009. The RVIA also expects RV rentals to increase 18 percent this year, while RV campground attendance has increased year-over-year,” says Jim Musbach, Coast’s chief executive officer. “Though sales of new RVs are sluggish, we believe consumers are using their RVs and enjoying the RV lifestyle more than ever, and will continue to need our aftermarket products.” "Based on economic conditions in the RV and marine markets, we anticipate that the second half of 2008 will be a difficult period. Our focus remains on areas management can directly control, such as increasing the number of exclusive products we sell, and controlling costs to keep them in line with sales. We believe that the strategic steps we have taken in the last several years -- the improved efficiency of our operations, our improved product development capabilities and our expanded market share of Coast developed products -- continues to place us in a good position for the future," Musbach says. Coast supplies more than 14,000 products from 500 manufacturers through 17 distribution centers located in the U.S. and Canada. Most of Coast's 12,000 customers consist of independently owned RV and marine dealers, supply stores and service centers. For more information, visit Coast online. | 
