Coast reports record 2Q earnings
MORGAN HILL, Calif. – Aftermarket replacement parts, supplies and accessories manufacturer Coast Distribution System said yesterday that net earnings for the second quarter of 2006 increased 40 percent compared with the same period last year, on a 9.7 percent increase in sales.
Net earnings totaled $3.0 million, or $0.66 per diluted share, on net sales of $56.8 million, in the second quarter ended June 30, compared with net earnings of $2.2 million or $0.45 per diluted share, on net sales of $51.7 million, in last year’s second quarter.
In the six months ended June 30, net earnings increased by approximately $1 million, or 31.6 percent, to $4.1 million, while earnings per diluted share increased by 38.5 percent to $0.90, as compared to net earnings of $3.1 million and earnings per diluted share of $0.65 in the same six months of 2005.
Coast attributed its increased profitability to higher sales and margin contributions from its line of portable and standby power generators, a new product line introduced in September 2005.
“We posted our best quarterly earnings in company history, despite the continuing sluggishness in the marine and RV industries, our two primary markets,” said Thomas R. McGuire, Coast chairman and CEO. “The Kipor portable and standby power generators have rapidly become one of our top-selling product lines, and we continue to add market share in this profitable category. In the next six months we plan on introducing several new Kipor products which we expect will further accelerate our growth and profitability. We also believe that the Kipor products will enable us to reduce, somewhat, the historical seasonality of our business.”
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