Dorman Products Inc. has announced sales for the third quarter ended Sept. 24, 2016, of $212.8 million, an increase of 1 percent from $210.9 million in the third quarter of 2015. Diluted earnings per share for the third quarter increased 5 percent to 77 cents per share from 73 cents per share in the third quarter of 2015.
“Customer sell-through rates stabilized in the quarter and were basically at the same rates that we saw in the second quarter. Our third quarter 2015 results included a significant benefit from stocking orders from a major customer, and as result, our 2016 third quarter sales growth was just 1 percent. We expect the unfavorable impact of the strong stocking order comparisons in the third quarter to reverse in the fourth quarter. We continue to expect full year 2016 sales growth to be in the 6 to 7 percent range and we also expect reported 2016 EPS growth to be in the mid-teens range,” said Matt Barton, president and CEO.
For the nine months ended Sept. 24, 2016, sales increased 5 percent over the prior year to $630.5 million from $598.1 million last year. Diluted earnings per share in 2016 rose 13 percent to $2.23 from $1.98 in the prior year. Operating cash flow for the nine months was $55.5 million compared to $57.5 million in the first nine months of 2015.
“We continue to be very optimistic about our future growth potential. During the quarter, we introduced 977 new product SKUs and we were also awarded significant new chassis business from a major customer, which will begin shipping late in the fourth quarter of 2016. As we look forward to 2017, we expect to deliver organic revenue and net income growth in the mid to high single digit range,” continued Barton. “We are continuing to invest in our new product development capabilities that will provide additional growth opportunities for both Dorman and our customers.”
The company did not repurchase any of its common stock in the quarter and has $57.8 million remaining under its current $150 million share repurchase program.
