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Action Performance Trimming Sails

The motorsports merchandiser posts a third-quarter loss.
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Motorsports merchandiser

Action Performance


put its quarterly dividend on hold and set plans to get out of some businesses.

The restructuring moves came as the Phoenix-based company posted a third-quarter loss on a sharp revenue decline and projected that fourth-quarter revenue would fall from a year ago as well. Action Performance cited lower sales of die-cast products to wholesale customers and mass merchandisers, and lower apparel and memorabilia sales to wholesale channels.

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Shares of the NYSE-listed company were halted in after-hours trading.

For its third quarter ended June 30, Action Performance lost $9.5 million, or 51 cents a share, from continuing operations. That reverses the year-ago continuing operations profit of $4.7 million, or 26 cents a share. Revenue slid to $73 million from $88 million a year earlier.

Action Performance said it expects fourth-quarter revenue to rise sequentially but to fall from the year-ago level as a result of lower sales of die-cast and apparel to wholesale distributors.

Action Performance said it expects to sell its McArthur Towel business next quarter at a $1.7 million loss, and plans to discontinue its Jeff Hamilton apparel business and the Castaway collectible business, leading to a $4.3 million asset writedown.

The company also said it wouldn't declare a nickel-a-share quarterly dividend, citing its restructuring actions.

On Tuesday, Action Performance dropped a nickel to $10.15.