Coast Distribution System Inc. reported it lost $957,000 during the third quarter primarily due to a decline in sales to RV industry customers.
The loss during the three months ended Sept. 30 compared with a loss of $163,000 incurred during the third quarter of 1999.
Coast’s sales revenue declined 10% during the July-through-September period to $37.1 million.
During the first nine months of this year, Coast’s loss totaled $233,000, compared with a profit of $1.3 million earned during the first nine months of 1999.
The company’s sales during the first nine months of this year were down 3% to $127.9 million.
In order to lower its operating costs, Coast adopted a new inventory management strategy in September that involves carrying smaller inventories, said Thomas McGuire, chairman and CEO. The new strategy allowed Coast to reduce its September inventory by $2.4 million and its October inventory by another $2 million, without adversely impacting customer service, McGuire said.