5/5/2015 1:22:00 AM
NEWS BRIEFS
Dorman Products Reports Sales Gains
Dorman Products reported first-quarter sales, including fasteners, rose 3% to $188.5 million. Diluted earnings per share decreased 6% to $0.60 per share. Q1gross profit margin was 38.7% compared to 39% for the same period last year.
“Sales growth for the quarter was a modest 3% primarily as a result of exceptionally strong growth in the first quarter of 2014 and the continued negative impact of an inventory reduction program at one large customer. Despite these challenges, we achieved a two-year stacked sales growth rate of 22%,” said CEO Steven Berman, Chairman and Chief Executive Officer. “Sell-through rates of our products in the quarter, despite several weeks in February that were negatively impacted by extreme weather, remain encouraging.”
During Q1, Dorman Products increased its distribution costs, which are expected to decline over the next three to six months before stabilizing.
“The distraction associated with the ERP implementation did slow down the introduction rate of our new products, but we expect to return to our previous pace in the next few months,” Berman added. “We remain confident in our ability to return to low double digit sales and earnings growth later this year.”
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