Midas reports a loss for the year
ITASCA, Ill.- As it continues to restructure, automotive service provider Midas Inc. reported a net loss of $40.4 million for the fourth quarter and a loss of $33.6 million for the year.
The results were impacted by pre-tax charges totaling $62.3 million in 2002 related to restructuring costs, including $26.3 million for the write-down of inventories associated with the sale and disposition of the company's Parts Warehouse Inc. quick-delivery distribution operation.
After deciding to exit the PWI business, Midas said it has closed 17 PWI sites so far in 2003 and is in the process of selling another 19 locations.
After the sales, Midas will operate 41 PWI sites, down from 77. Midas said it expects to be out of the quick-delivery business by year's end by either selling or closing the remaining 41 PWI locations.
Another $3.3 million of the special charges are from the company's plans to close three of its remaining 12 wholesale distribution centers in 2003.
Excluding the charges, Midas would have reported income of $5 million for the quarter and earnings of $4.5 million for the year.
Sales in the fourth quarter fell to $74.8 million from $79.4 million in 2001, primarily because of lower wholesale product sales, Midas said. For the year, sales were up slightly to $333 million from $331.5 million.
In 2002, Midas also began a program to begin selling tires-supplied by Memphis, Tenn.-based TBC Corp.-at its more than 2,000 franchise outlets nationwide.
SEMA conducts online tire polls
DIAMOND BAR, Calif.-In monthly online polls conducted by the Specialty Equipment Market Association (SEMA), 13 percent of respondents admitted they never check their tire pressure and 16 percent don't know they have to rotate their tires.
While the tire pressure poll was run on SEMA's consumer Web site in November 2001, the subsequent tire rotation question was posed last month. SEMA would not say how many total respondents participated in the voluntary poll, but a spokeswoman said an average of 68,852 unique visitors a month visited the site, based on data from the past four months.
Thirty-nine percent of respondents checked their tire pressure monthly, with another 20 percent checking it every week. Thirty-nine percent of respondents said they rotated their tires according to their owner's manual, with an additional 20 percent rotating them at every oil change. Also, 25 percent said they rotate the tires only when they notice uneven tire wear.
Diamond Bar-based SEMA's consumer Web site is at www.enjoythedrive.com.
NASCAR launches online list of shops
BEDFORD, Texas-More than 3.5 million users each month can search for automotive service professionals in their local areas after the launch of the NASCAR Performance Network.
The network-formed by NASCAR, the Automotive Service Association (ASA) and Turner Sports Interactive-will be available June 3 at the Web site www.nascar.com. ASA repair and body shops will be listed in the network. NASCAR also plans to promote the site with television and print ads starting in June.