Motorcar Parts of America Inc. on Monday reported a net loss in its fiscal third quarter -- despite a 27 percent increase in sales -- partly due to goodwill impairment and other charges.
Torrance-based Motorcar Parts reported a net loss of $314,000 (-3 cents per shares), compared with a net loss of $183,000 (-2 cents) a year ago. Net sales were $35.8 million.
Motorcar, which remanufactures and distributes aftermarket auto parts, said sales grew because people are holding on to their cars longer in the current economy and thus needing to replace parts on their vehicles.
"Recent industry reports indicate there are bright spots within the automotive aftermarket sector as consumers delay new car purchases," Chief Executive Selwyn Joffe said in a statement. "This clearly bodes well for non-discretionary aftermarket parts, such as alternators and starters, and we look forward to further market expansion opportunities from current and new customers."
Non-cash charges included of $1.7 million due to the significant decline in the value of the Mexican Peso, and a $2.1 million goodwill impairment charge.
Motorcar Parts shares were up 3 cents, or less than 1 percent, to $4.61 in morning trading on the Nasdaq.
For reprint and licensing requests for this article, CLICK HERE.