DURA Automotive Systems, Inc. (NASDAQ:DRRA), today reported financial results for the third quarter and nine-month period ended September 30, 2000. Results for the quarter were in line with our September 7th press release. However, third-quarter results have been hurt by continued weakness in the recreational vehicle market, declines in the European currencies versus the U.S. dollar and production cuts related to the Firestone tire recall.
Third-quarter revenues were $587.1 million, an increase of $6.2 million compared to the third quarter of 1999. Third-quarter operating income was flat compared to the comparable quarter of 1999. Net income was $10.3 million, or $0.58 per diluted share outstanding, versus $11.3 million, or $0.63 per diluted share, in the comparable 1999 period.
For the nine-month period, revenues were $1,977.5 million, an increase of $446.8 million compared to the first nine months of 1999. During the second quarter of 2000, the company announced that it settled two product recall issues through a cost sharing agreement with a significant customer. As a result of this agreement, Dura recorded a one-time pretax charge to operations of $16.0 million, or $0.51 per share net of tax, during the second quarter of 2000. Excluding the one-time recall charge, nine-month operating income rose $38.5 million to $167.3 million and net income increased to $47.8 million, or $2.63 per diluted share, compared with $39.0 million, or $2.35 per diluted share, before the extraordinary items and accounting change recorded in 1999.
Karl Storrie, president and chief executive officer of Dura Automotive, stated, “We had some difficult challenges in the quarter and, while we are pleased with our performance, there is still significant structure cost reduction work in process. The recreational vehicle market downturn and the significant decline of the European currencies were difficult obstacles to overcome. These issues, coupled with North American customer plant shut-downs related to the Firestone tire recall provided challenges that our management team worked to contain through cost reduction actions and a continued focus on improved performance.”
Dura Automotive Systems, Inc., is the world’s largest independent designer and manufacturer of driver control systems and a leading global supplier of door systems, window systems and engineered mechanical components for the global automotive industry. The company is also a leading supplier of similar products to the North American recreational vehicle, mass transit and heavy truck market. The company’s products include door modules, parking brake systems, automotive cables, transmission shifter systems, encapsulated and sliding windows, window regulators, hinges, latches, seating systems, engine control products, underbody tire carriers, jacks, brake, clutch and accelerator pedals and other mechanical assemblies. The company’s products are sold to every North American, European and Japanese original equipment manufacturer, including Ford, General Motors, DaimlerChrysler, Volkswagen, BMW, Toyota, Honda, Nissan, PSA (Peugeot and Citroen) and Renault. Dura’s operating headquarters is in Rochester Hills, Mich., and its corporate office is in Minneapolis, Minn.