2/19/2015 12:18:00 PM
NEWS BRIEFS
Dorman Products Reports Sales & Profit Growth
Dorman Products, Inc. reported sales, including fasteners, increased 2% to $174 million for the fourth quarter of 2014.
The company said its Q4 sales growth rate would have been 9% except for $5.9 million in incremental costs associated with the ERP conversion, consisting of $2.8 million in increased distribution costs, $1.9 million in consulting and other related support costs, $0.5 million in additional depreciation and $0.7 million in other costs.
“The sales growth rate in the second half of 2014 was negatively impacted by softer order patterns from two customers that chose to reduce inventory levels,” said CEO Steve Berman. “Growth rates for the rest of the business were in the low teens, which were down slightly from historical levels. Additionally, sell-through rates of our products were strong in the fourth quarter, but down slightly from third quarter levels.”
Full-year sales including fasteners, increased 13% to $751.5 million. Diluted earnings per share rose 11% to $2.49. R&D spending increased 18% to $15.8 million, and total parts introduced in 2014 increased 8% to approximately 3,750 parts, including 1,266 “Formerly Dealer Only” parts.
“The first half of 2015 will be challenging given the 20% growth rates experienced in the first half of 2014 and additional costs to be incurred as we work to complete the stabilization and transition phase of the conversion to our new ERP system,” Berman added.
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