Amerigon Posts 3Q Loss On Acquisition Costs
NORTHVILLE, Mich. (AP) — Amerigon Inc., which makes climate-controlled seats and other products for the auto industry, said Tuesday it posted a $1.6 million third-quarter loss because of costs stemming from a recent acquisition.
But the Northville, Mich., auto supplier's revenue rose fourfold thanks to the acquisition of WET Automotive Systems AG, a German automotive thermal control and electronic components company that Amerigon acquired in May.
Amerigon posted a net loss of 7 cents on a per-share basis in the three months ended on Sept. 30. In the same quarter a year ago, it posted net income of $2.7 million, or 12 cents per share.
Excluding charges related to the acquisition and its financing, Amerigon posted an adjusted profit of $1.6 million, or 7 cents per share.
Revenue rose to $125.6 million from $30.5 million, boosted by $95.1 million in contributions from WET Automotive.
Analysts, on average, expected an adjusted profit of 10 cents per share on $114 million in revenue, according to a FactSet poll.
The company said higher material costs due to the strengthening Japanese yen and acquisition-related accounting measures hurt its gross margin.
Amerigon said it expects its product revenue in the current quarter to be slightly lower than it was in the third quarter because of lower auto industry production in North America and Europe.