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Dorman Products Reports Sales and Earnings for the Second Quarter

Revenues for the three months ended June 25 increased 14 percent over the prior year to $131.6 million from $115 million last year.

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COLMAR, Pa. — Dorman Products has announced financial results for the second quarter ended June 25.

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Revenues for the three months ended June 25 increased 14 percent over the prior year to $131.6 million from $115 million last year. Net income in the second quarter of 2011 was up 11 percent to $12.7 million from $11.5 million in the same period last year. Diluted earnings per share in the second quarter of 2011 rose 11 percent to 70 cents from 63 cents in the same period last year.

For the six months ended June 25, 2011, and June 26, 2010, revenues in 2011 increased 20 percent over the prior year to $256 million from $214 million. The company said revenue growth was driven primarily by strong overall demand for its products, and higher new product sales.

Net income in 2011 was up 19 percent to $25.1 million from $21.1 million last year. Diluted earnings per share in 2011 rose 18 percent to $1.38 from $1.17 in 2010.

Steven Berman, chairman and CEO, said, "Second quarter sales growth was strong, but down from recent growth levels as a result of inventory reduction efforts by a few customers. However, new product revenues remained strong, and we introduced over 1,000 ‘New to the Aftermarket’ products during the first half of the year. We are on pace to introduce a record number of ‘New to the Aftermarket’ products in 2011. During the quarter we completed construction on a 177,800-square-foot addition to our Warsaw, Ky., facility which will provide much needed space as we continue to expand our business."

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Automotive Aftermarket Manufacturing

Dorman Products Reports Sales and Earnings for the Second Quarter

Reported sales for the three months ended June 27, were up 6.6 percent to $96.2 million from $90.3 million last year.

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COLMAR, Pa. — Dorman Products has announced financial results for the second quarter ended June 27.
 
Revenues for the three months ended June 27, increased 8.7 percent over the prior year, excluding the impact of foreign currency exchange and the sale of Dorman’s Canadian subsidiary. Reported sales for the three months ended June 27, were up 6.6 percent to $96.2 million from $90.3 million last year.

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For the six months ended June 27, revenues before the impact of exchange and the sale of the Canadian business were up 9.5 percent, while reported sales for the six month period rose 7.2 percent to $182.7 million from $170.4 million last year. Revenue growth in both periods was driven by strong overall demand for our products and higher new product sales.

Net income in the second quarter of 2009 was $6.3 million compared to net income of $5.2 million in the same period last year. Diluted earnings per share in the second quarter of 2009 rose 21 percent to 35 cents compared to 29 cents in the same period last year.

For the 13 weeks ended June 27, gross profit margin was 33.3 percent in 2009 compared to 33.4 percent in the prior year. Selling, general and administrative expenses in 2009 increased 1.3 percent to $21.8 million from $21.5 million in 2008 despite higher incentive compensation expense due to increased earnings levels. Operating expenses before the impact of the higher bonus provision were down 1 percent over the prior year despite 7 percent growth in net sales as Dorman’s continued focus on cost-control offset variable cost increases associated with the higher sales levels.

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Interest expense, net, decreased to $0.1 million in 2009 from $0.3 million in 2008 due to lower borrowing levels and interest rates. Dorman’s effective tax rate increased to 38.6 percent from 37.8 percent in the prior year. The 2008 tax provision was reduced by the reversal of reserves upon the completion of the audit of our 2005 tax year by the Internal Revenue Service.
    
Net income in the first six months of 2009 was $10.8 million compared to net income of $7.9 million in the same period last year. Diluted earnings per share in the six months ended June 27 were up 36 percent to 60 cents from 44 cents last year.

Richard Berman, chairman and chief executive officer, said, "Demand for our products continues to increase despite the difficult economic climate. Initial feedback on our most recent Service Dealer Guide, which highlights more than 75 exclusive new-to-the-aftermarket products, has been positive and reinforces that we are offering the right products at the right time to our customers. We are encouraged by the overall growth prospects for our business and our OE Solutions line in particular. Dorman will continue to invest in new product development as we look to further expand our leadership position in the aftermarket."

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