EXETER, Pa. — Keystone Automotive Operations has announced financial results for its fiscal third quarter 2008, which ended Sept. 27.
Net sales for the third quarter 2008 were $136.3 million, a decrease of $18 million, or 11.7 percent, compared to $154. 3 million for the same period in 2007. The company said the decrease in sales was driven by a combination of factors, including a decrease in consumer spending on discretionary items, general economic uncertainty, a year-over-year decline in truck and SUV sales and the decline of available credit in the marketplace.
Gross profit for the third quarter was $42 million versus $46.5 million for the same period in the prior year, representing a decrease of $4.5 million or 9.7 percent. Gross margin increased to 30.8 percent in the fiscal quarter ended Sept. 27, an increase of approximately 70 basis points compared to gross margin of 30.1 percent for the same period in 2007.
Operating income for the third quarter 2008 was $1 million, a decrease of $4.5 million compared to $5.5 million for the same period in the prior year. The decrease was attributable to lower sales, which was partially offset by an improvement in gross margin.
Keystone Automotive Operations recorded a net loss of $5.5 million in the third quarter versus a net loss of $3 million for the same period in 2007. The increased net loss was primarily attributable to a $4.5 million decrease in gross profit offset by a $1.4 million decrease in interest expense and a $0.6 million increase in income tax benefit.
