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Motorcar Parts of America rallies after reporting 16% increase in quarterly net sales

The company cited a boost in its rotating-electrical business
Auto parts
The company said it is encouraged by a revitalization of demand for auto parts

Motorcar Parts of America Inc (NASDAQ:MPAA) rallied Tuesday after reporting that its second-quarter net sales increased 16% to $127.9 million.

The Torrance, California-based company said in a press release that the boost in net sales was mainly attributable to increases in its rotating electrical business.

READ: Veoneer shares zoom away in pre-market as auto parts group sees record orders in 2018

Shares of Motorcar Parts gained $2.39, or 12%, to $21.52 in Tuesday’s Nasdaq trading.

Adjusted net sales for the second quarter ended September 30 increased 14.5% to $130.2 million from $113.7 million a year earlier.

“We are encouraged by our new business wins and revitalization of demand for our products at the consumer level – both of which support our optimism and expectations for continued growth,” CEO Selwyn Joffe said in a statement.

Net income for the second quarter was $3.5 million, or $0.18 per diluted share, compared with $5.6 million, or $0.29 per diluted share, a year earlier.

The company cited customer allowances of $2.2 million, up-front one-time costs of $1.2 million and a core buyback premium amortization of $1 million, all related to new business.

Contact Dennis Fitzgerald at [email protected]

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