NEW HAVEN, CT — Transpro has announced first quarter net sales of $61.2 million, an increase of 16.1 percent over net sales of $52.7 million in the first quarter of 2003. he company reported a net loss of $0.4 million, or $0.06 per diluted share for the first quarter, a significant improvement over a net loss in the year ago period of $4.3 million, or $0.61 per diluted share.
Within the Automotive and Light Truck Group, net sales increased 11 percent to $43.4 million from $39.1 million in the year ago period. Results for the Automotive and Light Truck Group benefited from increased demand for heaters as a result of weather conditions in January and February, the contributions of the Fedco acquisition, which was being integrated during the first quarter of last year, product line extensions by certain of the Company’s retail customers and new business programs initiated since the first quarter of 2003, the company said.
The company said the group also benefited from significantly improved unit production costs as a result of cost reduction actions the company has taken in this area. However, the company said results were unfavorably impacted by lower demand for the its temperature control products, despite having added new customers over the past year.
Net sales in the Heavy Duty Group increased 31 percent to $17.8 million from $13.6 million in the first quarter of last year. The Group’s results reflect increased product demand from OEM customers due to rising Class 7 and 8 truck sales, incremental revenues from new business announced subsequent to the first quarter of last year, the positive effect of an improving economy on demand for the company’s heavy duty aftermarket products and revenues from new aftermarket product lines recently introduced into the marketplace. Operating results also benefited from continued improvements in productivity and expense reduction in this business group.
As a result of the actions taken to reduce costs and enhance operational efficiencies, as well as improved sales due to new customer wins and the benefits of a generally improving economic climate, Transpro generated operating income of $0.4 million in the first quarter of 2004, versus an operating loss of $3.9 million in the first quarter of last year.
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