Montgomery Autoparts Inc announces Q2 results
TORONTO, Aug 23, 2015 – Montgomery today reported net earnings of $13.6 million for the second quarter ended June 30, 2015, on sales of $220 million and EPS of $0.45, compared to net earnings of $33.2 million on sales of $250 million and EPS of $0.90, for the same quarter in 2014. Net earnings for the first six months of 2015 were $23.5 million on sales of $470 million and EPS of $0.88 compared to net earnings of $51.2 million on sales of $550 million and EPS of $1.45 for the same period of 2014.
President and chief executive officer of Montgomery Autoparts Inc, Roman Jovanovic commented; “In light of the current economic climate consumers are cautious about their purchases and the automobile industry has seen a drop in sales in all major national and international markets.”
The Q2 results are impacted by the sub-prime mortgage lending crisis which continues to effect employment in North America. The slow recovery of the economy has contributed to dampening in consumer confidence that there will be more jobs to facilitate spending. This has also seen a dramatic drop in demand for cars, SUVs and other vehicles.
This has also shaped investors who are hesitant about the prospects of the automotive industry and the companies supplying them. Consequently, the automobile industry has forced manufacturers to cut back on operations to adjust to the tough economy and job losses in North America and Europe.
The withdrawal of consumer credit by banks and lenders who are recovering from the huge losses on loans made when the economy was booming during the mid-part of the decade has also affected purchases. A shift in consumer preference to choose more fuel efficient and moderately priced automobiles has since followed and affected mainstream vehicle purchases.
Montgomery Autoparts Inc
As one of the largest auto parts supply companies in Canada, Montgomery provides braking, ignition and auto transmission components to automobile manufacturers in central, southern and south western Ontario.
For more information contact David Booth at david.booth@montgomery.com or call 416-555-5888
