Motorcar Parts of America Reports Strong Fiscal 2011 First Quarter Results

LOS ANGELES, Calif. — Motorcar Parts of America reported strong results for its fiscal 2011 first quarter ended June 30, 2010, reflecting increased sales and improved productivity.

Net income for the fiscal 2011 first quarter climbed sharply to $2.5 million, or $0.21 per diluted share, compared with net income of $1.2 million, or $0.10 per diluted share, for the comparable period a year earlier.

Net sales for the fiscal 2011 first quarter increased 10.8 percent to $36.2 million from $32.7 million for the same period last year.

Gross profit for the fiscal 2011 first quarter was $11.5 million compared with $7.2 million for the same period a year ago.

Operating income for the fiscal first quarter climbed 77.4 percent to $5.4 million from $3.1 million in the same period a year ago.

General and administrative expenses were negatively impacted by a $471,000 non-cash loss as a result of negative foreign currency fluctuations in the fiscal 2011 first quarter. The company benefited in the same period a year earlier as a result of a non-cash gain in foreign currency fluctuations of $964,000.

"The 2011 fiscal year is off to an excellent start, with strong sales momentum and solid profitability as the company continues to focus on operating leverage and increased usage of available capacity," said Selwyn Joffe, chairman, president and chief executive officer of Motorcar Parts.

Despite a tough commercial tire market in 2023 due to overstock and the effects of a rubber-banding supply chain, some tire manufacturers are expressing a cautious optimism for stabilization and gradual recovery through the rest of 2024 and into 2025.

"The economy is not showing signs that it’s going to slow down, but I don’t think the situation’s going to improve dramatically by the end of this year. It’s more likely next year," said Pierluigi Cumo, Vice President of B2B products, at Michelin North America. "We can see the light because the beginning of 2023 was very bad. I think now we’ve found the bottom, and I don’t think we’re going to get much further from the bottom in 2024."