Champion Parts, Inc. remanufacturer of automotive parts, today announced a net profit increase of 49.4% for the first quarter ended April 2, 2006 of $239,000, or $0.07 per share, compared to $160,000, or $0.04 per share for the same period in 2005. Net sales increased 5.6% to $6,137,000, compared to $5,813,000 in 2005.
“We are especially pleased with the 49.4% increase in our first quarter profitability and also very gratified to see a 5.6% rise in our net sales, despite higher costs of products sold,” said Jerry A. Bragiel, president and chief executive officer. “It’s a combination that’s tough to beat,” Bragiel continued, “and we were also encouraged to see an early-season demand and increase in net sales for our air conditioning products and a higher than anticipated net sales of carburetor products.”
The chief executive noted that “with the warmer months ahead, the company expects a continued strong demand for our air conditioning product lines.”
The company said that its management and marketing strategies and concerted operational efforts are reflected in the strong first quarter results and improvements in its balance sheet.
Included were lower loan balances on its available credit facilities compared to the first quarter 2005, which resulted in a lower interest expense; higher average product selling prices, reflecting favorably on net sales; an improvement of $544,000 in net working capital compared to 2005 year-end, primarily reflecting higher accounts receivable, and a lower parts inventory was also achieved.
The company also said it is continuing its pursuit of new products and markets for existing products, which include internal new product development, as well as acquisition opportunities.
Champion Parts remanufactures fuel system components, air conditioning compressors, front wheel drive assemblies, and other underhood electrical and mechanical products for the passenger car and light truck, agricultural, heavy-duty truck and marine parts aftermarket.
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