The Coast Distribution System today (March 7) reported sales growth during a traditionally slow fourth quarter, driven by a new generator product sourced from Asia, while increased costs associated with a new distribution center yielded a net loss for the company’s year-end.
“We were pleased with our performance this year, as we increased sales under difficult market conditions,” said Thomas R. McGuire, chairman and CEO for the Morgan Hill, Calif., RV and marine aftermarket supplier. “Our new larger distribution warehouse is allowing us to increase the number of proprietary-branded products we can source overseas, as shown by the strong sales of our new generator product line.”
The company reported a fourth-quarter net loss of $1.05 million compared with a net loss of $999,000 the previous year as sales increased 6.7% to $29.3 million from $27.5 million.
For the year, ended Dec. 31, Coast reported a dip in net earnings to $3.8 million from $4.4 million a year ago while sales rose to $176.3 million from $171.8 million.
“We are optimistic our sales will continue to grow in 2006 as market conditions improve due to increased consumer confidence and stabilized fuel prices,” McGuire said. “We also expect the introduction of new, higher-margin products will boost our profits.”
During Coast’s fourth quarter, the company received an unsolicited buyout proposal from Bell Industries Inc. Coast’s board unanimously rejected the offer.