SHELTON, CT — Raytech Corp., which makes wet and dry clutch, power transmission and brake systems for automotive OEM, heavy-duty on-and-off highway vehicles and aftermarket vehicular power transmission systems, has reported results for the second quarter of 2004.
For the thirteen-week period, which ended on June 27, Raytech announced net income of $.1 million or nil per basic share, compared to a net loss of $1.5 million or 4 cents loss per basic share for the same period in the prior year. Raytech recorded net income of $1.4 million or 3 cents per basic share for the twenty-six-week period, which ended on June 27, compared to a net loss of $1.6 million or 4 cents loss per share for the same period in the prior year.
The company reported net sales for the thirteen-week period of $58.4 million, compared to $54.1 million for the same period in the prior year, an increase of $4.3 million or 8 percent. Net sales for the 26-week period were $115 million, compared to $109.8 million in the same period in the prior year, an increase of $5.2 million or 4.7 percent. The company said the increase in sales was driven by increased demand and product offering in its aftermarket segment, increased demand in China and favorable currency translation in Europe. However, Raytech noted that the company continues to experience pressure to reduce prices from certain of its major customers, most notably in the domestic OEM business and to a lesser degree, in China.
The company recorded operating profit of $2.1 million for the thirteen week period, compared to an operating loss of $.3 million for the same period in the prior year, an increase of $2.4 million. The operating income for the twenty-six-week period was $4.6 million, compared to operating income of $.3 million for the same period in 2003. The company said the increase in operating profit reflects the increase in sales principally in its aftermarket business and an increased emphasis on reducing costs.
For more information about Raytech, go to: www.raytech.com.
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