Dorman Products reported sales, including fasteners, increased 6% to $257.7 million in the first quarter of 2020.  Gross profit dropped 3.1% to $84.8 million, with gross margin down to 32.9% compared to 35.9% in the same quarter last year.  Net income slipped 2.5% to $22.8 million.

“We started the year off strong, reporting first quarter net sales and earnings per share ahead of our expectations, driven by growth across both retail and warehouse distributor channels,” stated CEO Kevin Olsen.

Olsen said the “vast majority” of Dorman’s retail and wholesale customers are open for business, so all of Dorman’s U.S. facilities continue operating at this time, with modified staffing in certain locations.  Dorman is closely monitoring updates from local, state and federal authorities, and adjusting its operations as necessary.

Dorman has established enhancing safety protocols, including requiring administrative employees to work from home where applicable and implementing social distancing and sanitization practices at its facilities.  In addition, the company adopted a COVID-19 sick leave policy providing continued salary and benefits to eligible employees.

In 2019, Dorman transferred operations of its existing distribution facility in Portland, TN, to a larger facility nearby.  Dorman expects this move to improve customer service capabilities and efficiency.  However, in the first quarter of 2020, the Portland facility costs were approximately $1.3 million ($1.0 million after tax or $0.03 per diluted share) higher than in the prior year quarter due to lower productivity levels as we continued to ramp up production.  Web: DormanProducts.com