Q3 a downer for Action Performance

The sluggish retail economy continues to hammer NASCAR merchandise king Action Performance Cos., which reported disappointing third-quarter results last week.

The company announced earnings of $6.3 million, or 35 cents a share, down from the 44 cents per share that analysts were expecting and well off the $12.5 million profit that Action reported in the third quarter last year. Sales for the quarter, ended June 30, declined to $87.6 million, down from $112.1 million for the same period in 2002.

Die-cast sales were $48.5 million, compared with $64 million for the same quarter last year. Apparel and other merchandise sales fell to $38.5 million from $47.2 million for the comparable quarter.

In a conference call with investors, company officials predicted fourth-quarter sales of between $100 million and $115 million and earnings of 52 cents to 66 cents per share. For the year, the company expects revenue of $364 million to $375 million and earnings of $1.70 to $1.83 per share.