Acquisition a Continued Drag on Motorcar PartsWednesday, November 28, 2012
Shares of Motorcar Parts of America Inc. rose slightly on Wednesday after the company reported a wider first-quarter loss, despite a 26 percent jump in revenue.
The Torrance maker and distributer of aftermarket automobile parts reported a net loss of $9.9 million (-71 cents a share), compared with $8.3 million (-68 cents) the same period a year earlier. Revenue rose 26 percent to $89 million, reflecting growth in its rotating electrical components business.
The company, known for its alternators and starters, blamed the larger loss on weakness in its undercar business as it continues to turn around its Fenco division. The company acquired Fenco in a stock deal worth more than $5 million last year, but has been challenged in integrating the Toronto company’s accounting and other systems. Excluding expenses related to the turnaround, the company’s net loss would have been $4.5 million (-32 cents).
Shares closed up 19 cents, or 3.5 percent, to $5.61 on the Nasdaq.