5/29/2012 2:12:00 PM
NEWS BRIEFS
Dorman Products Upgraded to ‘Buy’ by BB&T
Dorman Products was upgraded by investment analysts at BB&T from a “hold” rating to a “buy” rating.
Dorman Products achieved its fourth consecutive year of revenue and earnings growth in 2011, with sales, including fasteners, rising 16.1% to $529.3 million. The company achieved a “record net profit” of $55.8 million before one-time expenses.
“Industry trends have been favorable.”
Dorman said revenue growth was driven by “overall strong demand for our products, higher new product sales and the impact of one additional week’s sales” in 2011.
Demand was bolstered by “favorable” industry trends. During the recession the auto dealership market consolidated, reducing Dorman’s prime competition.
“In addition, over the past several years consumers have been holding onto their vehicles longer. As a result, the average age of vehicles on U.S. roads in 2011 was at an all-time high of 10.8 years. Older vehicles mean increased sales of automotive replacement parts.”
During 2011 Dorman increased its workforce by 16% to an overall employee headcount of 1,265.
“It is our belief that we can continue to grow profitably by identifying and introducing new products, creatively marketing such products, and sourcing them competitively,” stated CEO Steven Berman. ©2012 GlobalFastenerNews.com
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