ORLANDO, Fla. -- General Automotive has reported its 2008 financial results for the 12-month period ended Dec. 31, 2008.

For General Automotive’s fiscal year ended Dec. 31, 2008, the company reported a revenue increase of 6.5 percent, to $12.4 million compared to $11.6 million for the same period in 2007. The company said this increase in revenue was primarily due to larger scheduled customer orders for the company through the first nine month period ended Sept. 30, 2008.

Economic conditions during the fourth quarter diminished previously realized growth rates from the company’s first, second and third quarter reporting periods in fiscal 2008.

Additionally, revenue from increased orders from the company’s wholly-owned subsidiary OE Source (OES) were slightly offset by a new rebate program, which resulted in a total net increase in 2008 revenues of $817,239 as compared to 2007.

While gross profit margins on product sales were improved by new domestic dealers and Asian product sourcing, an increase in the cost of shipping due to higher fuel surcharges caused a reduction in gross profit of $67,323 or a gross profit decline from 10.59 percent to 9.34 percent.

Gross profit for fiscal 2008 was $1.15 million compared to $1.22 million for the corresponding period in 2007. The company reported a net loss for fiscal 2008 of $3.3 million or (26 cents) per diluted share, compared to a net loss of $1.8 million or ($3.76) per diluted share in 2007. However, the results for the 12month period ended Dec. 31, 2008 included a net loss from discontinued operations of $1.4 or (11 cents) per diluted share.

During the third quarter of 2008, the company decided to discontinue the operations of their wholly-owned subsidiary, Global Parts Direct Inc. (GPD). As such, the board of directors agreed to the disposal of GPD through a sale of selected assets, which was closed on Nov. 14.

With declining Tier One customer demand for the type of electronic products provided by GDP during 2008, coupled with the subsidiaries’ lack of profitability and substantial reduction in revenues from 2007 levels, company executives determined that the deposal of GDP through a sale of selected assets, would both help mitigate the loss while strengthening the company’s valuation posture as they aggressively pursue new acquisition candidates going forward. This divestiture marks the company’s departure from the Tier One business that is directly tied to new car sales. All current business operations are focused on aftermarket parts needed to keep existing cars running.

In an update to the company’s previous news announcement, the management of General Automotive has officially entered into formal talks with several acquisition candidates, each with annual revenues of approximately $7 million to $30 million.

All of the company’s business operations are now conducted through its wholly-owned subsidiary, OE Source, which generated the majority of all 2008 revenues and delivered double digit revenue growth during General Automotive’s 2008 fiscal year ended Dec. 31.