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Tecumseh net loss $6.3 million

Staff writer ▼ | August 12, 2013
Tecumseh Products Company reported an operating loss of $3.9 million and a net loss of $6.3 million, or a net loss per share of $0.35, on net sales of $227.6 million for the quarter ended June 30, 2013.
Tecumseh
TecumsehTecumseh Products Company reported an operating loss of $3.9 million and a net loss of $6.3 million, or a net loss per share of $0.35, on net sales of $227.6 million for the quarter ended June 30, 2013.


his compares with an operating profit of $40.2 million and net income of $44.0 million, or $2.38 per share, on net sales of $228.1 million for the second quarter of 2012. The results in the second quarter of 2012 were primarily due to the recording of a non-recurring, non-cash postretirement benefit curtailment gain of $45.0 million.

"We continued to move forward in the second quarter of 2013. We are committed to our strategy to revitalize our product line, improve our competitive position and align the global manufacturing capacity to make Tecumseh a stronger company for the future," said Jim Connor, president and CEO.

Net sales in the second quarter of 2013 decreased $0.5 million, or 0.2%, versus the same period of 2012. Excluding the decrease in sales due to the effect of unfavorable changes in foreign currency translation of $3.4 million, net sales increased by 1.3% compared to the second quarter of 2012, primarily due to net volume and mix increases and price increases.

Loss from continuing operations for the quarter ended June 30, 2013 was $6.0 million, or a net loss per share of $0.33, as compared to income from continuing operations of $43.4 million, or $2.35 per share, in the same period of 2012. The change was primarily related to the curtailment gain on our postretirement benefit plan recognized in the second quarter of 2012.

In addition, S&A expense decreased by $0.9 million, despite a $1.0 million bad debt expense recognized in the second quarter of 2013 related to a bankruptcy filing by one of our Brazilian customers.


 

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