HOUSTON, Texas – Parts giant Transportation Components (TransCom USA) continued to struggle in the first quarter, reporting a net loss of US $63,000 on revenues of $77.8 million.
Revenues for the three months declined $0.4 million, or 0.5 per cent, due primarily to the overall softness in the heavy-duty aftermarket and the lower level of sales to oilfield service customers in the first quarter of 2000 compared with the first quarter of 1999, the cooperative says. These declines were partially offset by increased revenues in Mexico.
Selling, general and administrative expenses increased $1.4 million, or 7.1 per cent, as a result of costs to centralize administrative functions, including staffing and training of the general office. As previously disclosed, the company is behind schedule in consolidating these functions, but still expects to reduce overall administrative costs during the second half of 2000.
“We have continued to make progress with the integration and transition of our company from consolidator to operating company,” said T. Michael Young, TransCom USA’s chairman and chief executive officer. “The overall softness in the heavy-duty aftermarket in the first quarter of 2000 slowed our sales growth.” n
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