ASV today reported its second consecutive quarter of record net sales and net earnings with its results for the third quarter of 2004. Net sales for the Grand Rapids, Minn-based company totaled $40.6 million for the third quarter of 2004 compared with $29.2 million for the third quarter of 2003.
With the gross profit percentage increasing to 22.9 percent, net earnings increased to a record level of $4.4 million or 34 cents per share for the third quarter of 2004 compared with $3.1 million or 29 cents per share for the third quarter of 2003.
For the third quarter of 2004, net sales increased 61 percent to $112.7 million compared with $70.2 million for the same period in 2003. Net earnings doubled to $12.2 million or 92 cents per share compared with $6.1 million or 59 cents per share for the same period in 2003.
"Our sales mix changed, as we had anticipated, as Caterpillar increased its purchases of ASV's undercarriages for use on their Multi-Terrain Loaders (MTL) during the third quarter of 2004,” says ASV CEO Gary Lemke, adding that ASV’s sales of undercarriages to Caterpillar were 40 percent of the company’s sales for the third quarter of 2004, which is up from 26 percent in the second quarter.
"MTL orders continue strong and we anticipate MTL undercarriage sales will account for approximately 37 to 40 percent of our total sales for fiscal 2004, exclusive of Loegering's sales,” Lemke says. “Sales of R-Series Posi-Track products accounted for 46 percent of our sales for the third quarter of 2004, compared with 58 percent for the second quarter of 2004.”
ASV’s service parts sales increased to $5 million for the third quarter of 2004 compared with $2.9 million for the same period in 2003, according to Lemke. ASV's gross-profit percentage increased to 22.9 percent, compared with 22.3 percent for the third quarter of 2003 and 22.4 percent for the second quarter of 2004.
This increase in gross-profit percentage was the result of savings realized from ASV's cost reduction project implemented during the first quarter of 2004 and price increases on selected R-Series Posi-Track products and MTL products during the third quarter of 2004.
Partially offsetting these increases were steel surcharges of approximately $800,000 during the third quarter of 2004.
"We're pleased to achieve an increased gross-profit percentage in the third quarter of 2004, even with the level of steel surcharges we experienced,” Lemke says. “We believe our raw material savings and price increases will offset the surcharges we expect to receive for the balance of 2004."Latest from Lawn & Landscape
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