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Universal Power Group, Inc. (NYSE Amex: UPG), a Texas-based distributor and supplier of batteries and related power accessories and a third-party logistics provider, today announced financial results for the third quarter and nine months ended Sept. 30, 2011.
For the third quarter, UPG reported net income of $0.2 million, or $0.04 per diluted share, on net sales of $25.0 million, compared with net income of $0.9 million, or $0.18 per diluted share, on net sales of $28.3 million in the third quarter of 2010.
“Our results for the third quarter were impacted by decreased sales to our largest customer as well as industry-wide supply disruptions resulting from the closure of a number of battery production facilities throughout China. Even so, UPG continues to be profitable as we work to grow our revenues from core batteries and related power accessories,” stated Ian Edmonds, UPG’s President and Chief Executive Officer. “We are working to mitigate the impact of these factors on future results by shifting some of our manufacturing processes to unaffected areas in China and other parts of Asia. However, we expect a larger impact on fourth quarter sales than we experienced in the third quarter. We have continued the integration of our acquisition of ProTechnologies, and that business is on track to be accretive to our earnings by the end of the year. We are also working on new products for introduction at key industry trade shows over the next few quarters, which gives us renewed optimism as we drive future results.”
Third Quarter and Nine Month Results
Net sales for the third quarter fell 11.6 percent, to $25.0 million, from $28.3 million in the third quarter of 2010. Net sales of batteries and related power accessories to customers other than ADT Security Services and its authorized dealers grew 10.6 percent, to $22.6 million in the third quarter of 2011, compared to $20.4 million for the third quarter of 2010. Net sales to ADT Security Services and its authorized dealers in the third quarter of 2011 were $2.4 million, a decrease of approximately 69.4 percent from $7.9 million in the same quarter of the prior year.