International Jensen, as anticipated, reported a net loss for its fiscal second quarter and sharply lower earnings for the first half.
For the three months to August 31, the home and automotive audio maker had a loss of $347,000, against year-earlier net of $1.21 million, while sales of $60.6 million edged up 3.8%. For the half, Jensen’s net sank 89% to $420,000, and sales slipped 0.2% to $125.9 million.
Jensen earlier said it anticipated a loss for the quarter because of a decline in demand for OEM and aftermarket audio products. Also impacting earnings in the quarter was a $392,000 increase in interest expense related to higher debt levels from increased working capital.
As already announced, Jensen cut its salaried work force by 100 jobs, or about 20%, primarily in its automotive OEM sector. (See TWICE, September 18, page 5.) It will take a one-time $500,000 charge to cover the cost of the layoffs in its third quarter.
Jensen said that although its sales of Jensen/Advent products were down about 7% for the half due to inventory reduction by a major retailer, sales for the quarter were up 10% — “fueled by automotive CD products.” Also in the quarter, European sales rose 20%.
The quarter’s sales gains were largely offset by a slowdown in sales to auto OEM, and for the half, volume in that sector was off about 10%.
Results were below expectations, and Jensen is “taking strong measures to improve our competitive cost position and financial outlook,” said chairman Robert Shaw. There were signs at the end of the quarter that dealers have completed their inventory-reduction programs, he noted, and “we expect to see continued improvements in our consumer product sales” in the second half.
Jensen Reports Losses For Half, Second Quarter
International Jensen, as anticipated, reported a net loss for its fiscal second quarter and sharply lower earnings for the first half.
For the three months to August 31, the home and automotive audio maker had a loss of $347,000, against year-earlier net of $1.21 million, while sales of $60.6 million edged up 3.8%. For the half, Jensen’s net sank 89% to $420,000, and sales slipped 0.2% to $125.9 million.
Jensen earlier said it anticipated a loss for the quarter because of a decline in demand for OEM and aftermarket audio products. Also impacting earnings in the quarter was a $392,000 increase in interest expense related to higher debt levels from increased working capital.
As already announced, Jensen cut its salaried work force by 100 jobs, or about 20%, primarily in its automotive OEM sector. (See TWICE, September 18, page 5.) It will take a one-time $500,000 charge to cover the cost of the layoffs in its third quarter.
Jensen said that although its sales of Jensen/Advent products were down about 7% for the half due to inventory reduction by a major retailer, sales for the quarter were up 10% — “fueled by automotive CD products.” Also in the quarter, European sales rose 20%.
The quarter’s sales gains were largely offset by a slowdown in sales to auto OEM, and for the half, volume in that sector was off about 10%.
Results were below expectations, and Jensen is “taking strong measures to improve our competitive cost position and financial outlook,” said chairman Robert Shaw. There were signs at the end of the quarter that dealers have completed their inventory-reduction programs, he noted, and “we expect to see continued improvements in our consumer product sales” in the second half.
