Coast Distribution System Inc. reported it lost $2.6 million during the fourth quarter and $2.8 million during the full year 2000.
In comparison, Coast lost $1.3 million during the fourth quarter of 1999 and it earned a profit of $10,000 during the full year 1999.
Coast, which distributes accessories to customers in the RV and leisure marine industries, also reported its fourth quarter sales declined 13% to $19.6 million and its full year 2000 revenue was down 5% to $147.5 million.
“During the fourth quarter, we began to implement our new inventory management strategy, which resulted in a reduction in our year-end inventories of $5 million as compared to the prior year-end,” said Thomas R. McGuire, chairman and CEO. “Our inventories will continue to decline throughout 2001 as we expect our new supply chain strategy to begin to give us a comparative service advantage in our market place by the middle of this year. The results of our cost-cutting efforts will also become apparent as we go forward.”
McGuire added that RV and boat sales, in terms of unit volume, will “continue to be soft until consumer confidence returns.”