Motorsports merchandise company Action Performance Cos. posted steady fourth-quarter earnings last week as increased sales balanced out hardships the company sustained during West Coast port shutdowns.
Action announced net income of $13.01 million for the quarter, nearly even with $13.12 million in the fourth quarter last year. Net sales for the quarter increased slightly to $110 million from $108 million.
For the year, Action posted earnings of $44.9 million, up from $31.9 million last year. Net sales increased to $406.9 million from $323.3 million.
Investors reacted negatively to Action's announcement Thursday, probably because it also included guidance of anticipated slips in earnings for the coming quarter. After closing at $22.31 on Wednesday, shares in Action closed at $17.35 Thursday.
The company issued guidance for the first quarter, estimating earnings of 44 cents to 49 cents a share based upon an anticipated delay in its release of die-cast product for the 2003 season. That range would match the company's earnings for the first quarter of last year.
Action expects $13 million to $15 million in revenue to be booked later in the year as a result of the delay, which will come as the company retools machinery to reflect changes in body styles by Chevrolet and Pontiac.
The company said it does not expect the delay to drag on its earnings for 2003. It still projects revenue of $500 million in 2003.
"We will have product at Daytona. We will have product on the shelves at ... Wal-Mart," Action Performance CEO Fred Wagenhals said during an investors' conference call Thursday. "Will we have as much product as I would like to have? Probably not. But we will make it up in our second and third quarter."
