Fuel Costs Hurting Companies

When Diamond Triumph Auto Glass Inc. reported its sales and profits for the second quarter and the six months which ended June 30, 2005, Norm Harris, chief executive officer of the Kingston, Pa., based company, stated, "Despite increased sales during the second quarter of 2005 as compared to 2004, the company's earnings from operations were relatively flat due to certain rising costs."

Douglas Boyle, chief financial officer, explained to glassBYTEs™ that the primary driver in those certain costs was rising fuel prices.

The company is not alone in dealing with increased gasoline prices. The government reported that inflation surged in July as the long rise in energy prices finally started taking its toll on consumer activities.

The AGRR Magazine Message Forum has also seen industry companies discussing strategies to deal with this increased cost of doing mobile business. Some of those who post say that they have dropped mobile service, or are considering doing so. Others have taken a strategy of encouraging consumers to bring their vehicles in, even giving a discount if they do.

In the news item on Diamond Triumph's financial report yesterday, the years were inadvertently transposed for the figures. Following is the correct information.

Diamond Triumph Auto Glass, Inc.
  Six Months Ended June 30 (unaudited) Three Months Ended June 30 (unaudited)
($ in Millions) 2005 2004 2005 2004
Net Sales $112.4 $110.3 $58.9 $56.9
Operating Expenses 104.7 103.9 54.0 52.2
Income From Operations $7.7 $6.4 $4.9 $4.7
Net Income $5.4 $0.4 $4.7 $0.4
EBITDA $8.8 $7.5 $5.4 $5.2
Total Long-Term Debt $74.5 $80.0 $74.5 $80.0
Reconciliation of EBITDA to net income follows for the periods indicated:
  Six Months Ended June 30 Three Months Ended June 30
(dollars in millions) 2005 2004 2005 2004
Net income (loss) $ 5.4 $ 0.4 $ 4.7 $ 0.4
Interest expense 2.3 4.1 0.2 2.1
Depreciation and amortization 1.1 1.2 0.5 0.5
Provision (Benefit) for income taxes   - 1.8   - 2.2
EBITDA $ 8.8 $ 7.5 $ 5.4 $ 5.2


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