The Coast Distribution System today reported small increases in net income and net sales for the second quarter.
Coast, one of North America's largest aftermarket suppliers for the boating, RV and outdoor recreation industries, reported net income of $1.18 million, or 26 cents a diluted share, for the quarter that ended June 30, compared with net income of $1.16 million, or 26 cents a diluted share, for the second quarter of 2009.
Net sales increased by 4.6 percent, to $34.6 million, in the quarter, compared with $33.1 million in the same quarter of 2009. The improvement in sales was attributable to a slight firming of demand for the company's products, coupled with historically low inventory levels that Coast's aftermarket customers maintained, the company said.
Inventories on June 30 were $29.8 million, an increase of $5.1 million, compared with $24.7 million a year earlier.
"Our financial results for the second quarter reflected slight improvements in our market share, as well as our ongoing efforts to control costs and operate efficiently," CEO Jim Musbach said in a statement. "Although our progress was tempered by continued uncertainty in our markets over the last few months, we continue to focus on our objective of providing more of our branded products to our customers. Year to date, approximately 33 percent of Coast's sales were derived from the products that we have designed, developed and sourced during the last decade."
For the six-month period that ended June 30, Coast reported net earnings of $1.2 million, or 26 cents a diluted share, on net sales of $58.7 million, compared with net earnings of $300,000, or 6 cents a diluted share, on net sales of $56.3 million in the same six-month period of 2009.