HOPE, AR — Champion Parts announced a net profit increase of 49.4 percent to $239,000 or 7 cents per share for the first quarter ending April 2, compared to $160,000, or 4 cents per share for the same period in 2005. Net sales increased 5.6 percent to $6,137,000, compared to $5,813,000 in 2005.
“We are especially pleased with the 49.4 percent increase in our first quarter profitability and also very gratified to see a 5.6 percent rise in our net sales, despite higher costs of products sold,” said Jerry Bragiel, president and chief executive officer. “It’s a combination that’s tough to beat and we were also encouraged to see an early-season demand and increase in net sales for our air conditioning products and a higher than anticipated net sales of carburetor products.”
Bragiel also noted that with the warmer months ahead, the company expects a continued strong demand for its air conditioning product lines.
The company said that its management and marketing strategies and concerted operational efforts are reflected in the strong first quarter results and improvements in its balance sheet.
Included were lower loan balances on its available credit facilities compared to the first quarter 2005, which resulted in a lower interest expense; higher average product selling prices, reflecting favorably on net sales; an improvement of $544,000 in net working capital compared to 2005 year-end, primarily reflecting higher accounts receivable, and a lower parts inventory was also achieved.
The company also said it is continuing its pursuit of new products and markets for existing products, which include internal new product development, as well as acquisition opportunities.
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