COLMAR, PA -- Dorman Products has announced its financial results for the first quarter ended March 31. Sales increased 8 percent to $74.3 million for the first quarter from $68.9 million in the same period last year.

Reported net income in the first quarter of 2007 was $4.1 million compared to net income of $3.4 million in the same period last year. Reported diluted earnings per share in the first quarter were 22 cents compared to 19 cents in the same period last year.

The company said revenues increased primarily as a result of higher new product sales. Growth in the company’s non-automotive products and further penetration of existing automotive product lines also contributed to the sales increase. Approximately 1 percent of the company’s 2007 net sales increase was due to the favorable effect of foreign currency exchange.

Gross profit margin decreased to 34.7 percent from 35.9 percent in the same period last year. The margin declines are the result of higher product return costs and initiatives designed to maintain and increase market share, said the company.

Selling, general and administrative expenses were essentially unchanged, but declined from 27.1 percent to 25.3 percent of sales. The company said it was able to offset inflationary cost increases and variable spending increases related to sales growth with cost reductions and a $0.3 million reduction in vacation expense due to a vacation policy change.

Interest expense, net, decreased to $0.5 million from $0.6 million due to lower overall borrowing levels.

Richard Berman, chairman, president and chief executive officer, said, "Strong first quarter sales growth along with responsible spending control enabled us to further leverage our fixed overhead expenses to drive earnings growth. Our customers have embraced our initiative to sell products that were previously only available at the OE dealer. As a result, our OE Solutions line is one of the fastest growing lines in the aftermarket. We intend to maintain this 'First to Market' approach as there are many more new product opportunities available for Dorman and the aftermarket."

For more information about Dorman Products, go to: http:/www.dormanproducts.com.