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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV