ANN ARBOR, Mich., Aug. 4, 2011 /PRNewswire/ -- Tecumseh Products Company (Nasdaq: TECUA, TECUB), a leading global manufacturer of compressors and related products, today reported a net loss of $8.9 million, or $0.48 per diluted share, on net sales of $248.8 million for the second quarter ended June 30, 2011. This compares with a net loss of $5.1 million, or $0.27 per diluted share, on net sales of $249.3 million for the same period in 2010.
"The challenging economic environment has resulted in softer than anticipated sales in the second quarter," said Jim Connor, President, Chief Executive Officer and Chief Financial Officer. "We remain focused on mitigating a volatile demand environment and record levels of material's cost inflation in the second half of the year. We believe that implemented price increases and cost reductions will drive improvement throughout the second half. In addition, we continue to make progress in new product designs that will emphasize reducing costs while increasing operating efficiency and performance."
REVIEW OF OPERATIONS
For the quarter ended June 30, 2011, net sales were $248.8 million, down 0.2 percent from the same period last year. Excluding favorable currency impact, net sales decreased by 6.4%, compared to the second quarter of 2010.Sales of compressors for commercial refrigeration and aftermarket applications, which represented 58% of total sales in the quarter, increased 1.7%. Favorable currency and price increases resulted in an increase of 9.2%, which was partially offset by volume and mix declines of 7.5%. The volume and mix declines are primarily a result of customers reducing their inventory levels based upon their current forecasted demands as market conditions softened.