Prolong Warns That Earnings Will Be Off
Prolong International Corp. said Monday it expects to report a second-quarter loss of about $1.6 million on revenue of about $12 million.
The Irvine lubricants manufacturer attributed the loss to higher-than-expected start-up costs associated with the roll-out of a new line of automotive appearance products. A year ago, it earned $116,000 on sales of $8.4 million.
In a move to cut costs, Prolong said it plans to purchase television air time more efficiently, reallocate advertising dollars among media outlets, and review sponsorship payments and motor sports promotional activities.
The company also has eliminated about 10% of its work force, or about six jobs, since July 1, Chief Financial Officer Nicholas Rosier said. The company, which now has about 60 employees, anticipates no future layoffs, he added.
Prolong plans to report second-quarter results the week of Aug. 9.
Prolong manufactures and distributes patented lubrication and automotive appearance products, including additives for engine, fuel and transmission treatments. The company’s products are sold at Pep Boys, Wal-Mart and AutoZone, among other retail outlets.
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