Proof that there are still some facets to the industry that are showing positive signs of growth, catalog systems provider Vertical Development this week announced that it was moving its ShowMeTheParts.com to a bigger better server at Rackspace. By deploying in the world-class Rackspace data centers, ShowMeTheParts will be able to take advantage of Rackspace’s Zero Downtime Network and around-the-clock management of its physical devices, the network and the data center.
In other news, Dayco Products LLC announced today that it has filed suit against Dorman Products, alleging claims of trade dress infringement, false advertising and unfair competition based on Dorman’s sale of certain aftermarket automatic belt tensioners that are similar in appearance to corresponding Dayco products. Dayco claims it was the first company to successfully introduce a line of automatic belt tensioners for sale in the automotive aftermarket in 1997. Dayco has requested a jury trial and seeks from the court a variety of remedies, including permanent injunctive relief, seizure and destruction of infringing goods, monetary damages, punitive damages, costs and attorneys’ fees.
In more positive news this week, Advance Auto Parts has reported a 4.8 percent increase in comparable store sales for the quarter. Total sales for the second quarter ended July 18 increased 7 percent to $1.32 billion, compared with total sales of $1.24 billion in the second quarter of fiscal year 2008. During the second quarter, the company also opened 23 stores, including 7 Autopart International stores, closed 21 stores and relocated three stores.
While consumers flocked to their local dealerships to take advantage of the popular Cash for Clunkers program the past two weeks, the Automotive Aftermarket Industry Association (AAIA) says it may be smarter just to maintain your car, rather than trading it in. According to AAIA, vehicle maintenance would save consumers $30 billion in gasoline a year vs. spending $3 billion in taxpayer dollars to buy new cars. AAIA has been vocal in its opposition to the program for a number of reasons, including the fact that it believes the program hurts the aftermarket companies that manufacture, distribute, sell and install vehicle parts on used vehicles, and those who rebuild/remanufacture vehicle parts.
Finally, this week Motorcar Parts of America reported that for its 2010 fiscal first quarter, sales to two of the company’s largest customers returned to more normalized levels in the last month of the quarter. Net sales for the fiscal 2010 first quarter ended June 30 were $32.7 million compared with $32.7 million for the same period last year. Gross profit for the fiscal 2010 first quarter was $7.2 million compared with $11.5 million for the same period a year ago. The company noted that increased absorption of fixed costs from anticipated new business will enhance operating margins and enable the company to improve earnings performance for the remaining quarters of the year.
