General Automotive Company, a global provider of parts, accessories and advanced technology for the automotive industry, today reported financial results for its second quarter ended June 30, 2008. Revenues for the 2008 second quarter totaled $3,212,100, more than $500,000 less than the $3,843,100 in the 2007 second quarter. Gross profit for the 2008 second quarter was $285,100 compared to $498,700 in the prior-year period.
Despite lower revenues, GA overall reported a revenue increase of 14.5 percent for the six months ended June 30, 2008, compared to the first half of 2007. “Our OE Source (OES) business unit continued the strong performance it demonstrated in the first quarter of 2008, increasing both sales and margins due to high demand for engine replacement parts,” says Joe DeFrancisci, president and CEO. “OES’ growth was offset in the second quarter by the slowdown in the domestic new car market that our Global Parts Direct (GPD) unit serves, as well as by lower pricing for GPD’s 10-inch DVD players. GA implemented cost reductions to help balance weak car sales and worked to increase revenue by introducing new products and suppliers. “During the 2008 second quarter, our cost of goods sold stabilized to historical levels with no extraordinary items compared to the prior-year period,” says Harry Christenson, CFO. “While the company benefited from the reduced expense of stock-based compensation of approximately $291,200, this benefit was offset by the loss of gross profits at GPD and approximately $173,000 in additional expenses as a result of being a public company.” For more information, visit GA online. |
