Edelbrock Corporation (Nasdaq:EDEL), Torrance, Calif., has reported reduced sales and earnings for its fiscal 2003 third quarter and nine months ended March 25, 2003.
For the quarter, revenues totaled $25.7 million as compared to revenues of $28.2 million in the same period of fiscal 2002. Net income for the third quarter of fiscal 2003 was $210,000, or 4 cents per basic and diluted share, compared to net income of $1,132,000, or 21 cents per basic and diluted share, in the third quarter of fiscal 2002.
For the nine months ended March 25, 2003, revenues totaled $82.5 million compared to revenues of $84.3 million in the first nine months of fiscal 2002. Net income for the fiscal 2003 period was $2.3 million or 41 cents per basic and diluted share, compared to net income of $3.1 million, or 57 cents per basic and diluted share, in the same period a year ago.
Edelbrock attributed its decrease in sales for the quarter to poor weather, consumer concerns about the impending and ultimate war in Iraq, and the sluggish national economy. The decrease in quarterly revenues was across the majority of Edelbrock's product lines as customer warehouses reduced their inventory levels.
Featherlite reports loss
Featherlite, Inc. (Nasdaq:FTHR), Cresco, Iowa, reported a consolidated net loss for the first quarter ended March 31, 2003, of $676,000, or 9 cents per diluted share on revenues of $41.7 million. This compares with a profit of $1.1 million, or 17 cents per diluted share, on net sales of $60.6 million in the first quarter of 2002. Consolidated net sales decreased by $18.9 million, or 31.2%, over the same period last year, when a surge in sales following the slowdown triggered by the events of Sept. 11, 2001.
“While net sales declined in the first quarter, we believe that Featherlite has gained market share in the motorcoach and trailer segments,” said Conrad Clement, chairman and CEO.
He said the company’s sales leads in the first months of 2003 are at record levels. In addition, the company has recently implemented a program to reduce selling and administrative expenses and to reduce manufacturing labor and overhead in both the trailer and coach divisions. “We believe these cost reductions together with our marketing efforts will position the company for a return to profitability in future quarters,” Clement said.
Due to the first quarter loss,Featherlite is not in compliance with financial covenants with its lenders, but it expects to obtain waivers of these violations.
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