Coast Distribution Systems reported a profit of $1.6 million, or 35 cents per share, on net sales of $41.2 million for the second quarter of 2008. For the same period of 2007, Coast reported a profit of $1.5 million, or 33 cents per share, on net sales of $50.8 million.
Morgan Hill, Calif.-based Coast is one of North America's largest suppliers of aftermarket replacement parts, accessories and supplies for the marine, recreational vehicle and outdoor recreation industries.
Coast attributed the 18.9 percent year-over-year decline in sales during the quarter to decreased demand in the RV industry, coupled with decreased demand in the boating industry.
"Given the extremely difficult market conditions, we are pleased with our ability to increase margins and maintain our profitability," Coast CEO Jim Musbach said in a statement. "With economic uncertainties and higher fuel prices, it appears many would-be purchasers of RVs and boats are currently deferring big-ticket purchases.”
Coast reported a profit of $711,000, or 16 cents per share, on net sales of $80.7 million for the first six months of 2008, compared with a profit of $873,000, or 19 cents per share, on net sales of $94.5 million in the same period of 2007.
"Based on economic conditions in the RV and marine markets, we anticipate that the second half of 2008 will be a difficult period,” said Musbach. “Our focus remains on areas management can directly control, such as increasing the number of exclusive products we sell, and controlling costs to keep them in line with sales.”
Coast supplies more than 14,000 products from 500 manufacturers through 17 distribution centers in the United States and Canada. Most of Coast's 12,000 customers consist of independently owned RV and marine dealers, supply stores and service centers.