LOS ANGELES — Motorcar Parts of America (MPA) has said it expects revenues for its 2009 fiscal year ended March 2009 to be approximately $135 million to $140 million based on updated forecasts and anticipated timing of product shipments to several new customers.
"Based on current trends, we anticipate near-term sales will be somewhat weaker than anticipated due to timing of new business shipments. Nevertheless, we anticipate favorable fiscal year-over-year comparisons for the second half of 2009," said Selwyn Joffe, chairman, president and chief executive officer.
He noted that current economic conditions should help the company regain business momentum as consumers delay new car purchases and vehicles age, which ultimately requires the replacement of alternators and starters.
"Our ongoing sales and marketing initiatives are generating significant longer-term opportunities from both existing and new customers. In addition, potential acquisitions continue to be an important component of the company’s strategic growth initiatives as we focus on utilizing available capacity at our off-shore operations to gain additional operating leverage," Joffe added.
MPA has also signed a five-year agreement valued at approximately $22 million in the aggregate with an OEM automotive parts supplier to provide remanufactured alternators and starters to dealerships and specialty import wholesale parts distributors. Terms were not disclosed. In addition, the company has said it also has signed a new agreement with a prestigious traditional warehouse group valued at approximately $8 million in the aggregate over the next five years. The company recently commenced shipping product to this new customer.
"These agreements recognize our leadership position within the rotating electrical market, highlighted by quality products, manufacturing efficiency and a commitment to customer service. We are gratified to be selected as a supplier to these customers and look forward to a mutually beneficial relationship," Joffe said.