Tecumseh Products Company announced consolidated net income for the third quarter of 2003 amounted to U.S. $19.0 million or $1.03 per share compared to $14.2 million or $0.77 per share in the third quarter of 2002.
In addition to the third quarter net gain from restructuring actions and the federal income tax-related items, results for the first 9 months of 2003 include a charge of $13.6 million ($8.7 million net of tax or $0.47 per share) recorded in the first quarter related to environmental costs at the company's Sheboygan Falls, WI, U.S. facility and a restructuring charge of $28.5 million ($18.2 million net of tax or $0.99 per share) recorded in the second quarter related to the consolidation of operations in the Engine & Power Train business and related plant closings.
Consolidated sales for the third quarter of 2003 amounted to $438.5 million compared to sales of $310.9 million in the third quarter of 2002. Sales for the 9 months ended September 30, 2003 were $1,394.7 million compared to sales of $1,039.6 million in the first 9 months of 2002.
Third quarter 2003 sales in the company's compressor business increased to $193.8 million from $181.9 million in the third quarter of 2002. The company said this increase was primarily attributable to effects of foreign currency translation, which increased sales by approximately $11.3 million. Otherwise, gains in sales of compressors used in refrigeration applications and, to a lesser extent, gains in U.S. export sales of compressors used in air-conditioning that rebounded after the second quarter slowdown caused by the war in Iraq were offset by declines in sales of compressors used in unitary air-conditioning and commercial applications. Compressor business sales in the first 9 months of 2003 increased $5.6 million, or approximately 0.9 percent, from the first 9 months of 2002. According to the company, this relatively flat sales reflect an increase due to currency translation and a 36-percent increase in sales of compressors utilized in refrigeration applications, more than offset by declines in sales of compressors used in air-conditioning.
Results from the company's Brazilian compressor operations for the third quarter of 2003 declined from the comparable prior year period, reflecting a shift in sales mix to lower priced compressors, increased material and operating costs, and foreign currency effects. Despite these declines, the company said that Brazilian operations remain a key to future competitiveness, and for the 3 and 9 month periods ended Sept. 30, 2003, represented 64 percent and 59 percent of operating income for the compressor business compared to 64 percent and 50 percent, respectively for the comparable periods in 2002.
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