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Aftermarket supplier Coast Distribution System Inc. reported a slight decrease in sales and earnings for the Morgan Hill, Calif.-based company’s second quarter, ended June 30.
The publicly traded company reported second-quarter sales of $51.7 million compared to $52.1 million a year ago. Net earnings during the three-month period were $2.2 million versus $2.6 million last year.
For the six months, Coast reported sales of $101.6 million, up from $100.8 in the year prior, while net income fell to $3.1 million from $4.1 million.
The company also reported a 6.6% decline in gross profits for the quarter and 4.7% for the six months, largely due to “the combined effects of strategic price reductions for some products and higher freight, shipping and steel costs.”
“Overall, we are pleased with our results for the quarter and six months,” stated Thomas R. McGuire, chairman and CEO of Coast. “Despite a difficult market, in which sales of new recreational vehicles have been declining, we were able to generate sales largely comparable to the sales we achieved in the three and six months ended June 30, 2004.
“As a result, in terms of sales, we were able to outperform most others in the RV market, many of whom have been reporting double-digit sales declines.”
In addition, Coast said it will be relocating its Visalia, Calif.-based warehouse and distribution center to a larger facility.