Cost of goods sold (excluding items shown separately in the income statement) as a percent of net sales deteriorated to 80.0% for the quarter ended September 30, 2012, compared to 78.6% in the corresponding quarter a year ago, and compared to 79.3% in the immediately preceding quarter ended June 30, 2012. Included in cost of goods sold for the three months ended September 30, 2012 were i) approximately $3 million of costs for idle manufacturing resources incurred following the Guangzhou Fire, and ii) approximately $0.5 million restructuring charges related to process inventories made obsolete by the company’s closure of its Huizhou, China factory.Operating income was $4.4 million or 1.3% of net sales in the three months ended September 30, 2012, compared with $21.4 million or 7.7% of net sales for the third quarter of 2011, and compared with $8.7 million or 2.9% of net sales for the three months ended June 30, 2012. Included in operating costs during the three months ended September 30, 2012 were i) approximately $10.0 million of restructuring costs related to a) the previously announced closures of two factories in China, b) the integration of the business acquired from DDi Corp., c) a reduction of workforce to streamline continuing operating costs in China, and d) the insurance deductible for inventories damaged in the Guangzhou Fire, ii) approximately $3 million of manufacturing inefficiencies related to the Guangzhou Fire, and iii) approximately $0.2 million travel and other expenses related to acquisitions. Excluding such costs, operating income for the quarter ended September 30, 2012 would have been approximately $17.6 million, or 5.4% of net sales.
Viasystems Announces Third Quarter 2012 Results
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