Patrick Industries feeling effects of RV slowdown
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Elkhart-based Patrick Industries Inc. (Nasdaq: PATK) is feeling the effects of a slowdown in the recreational vehicle industry and macroeconomic headwinds. The components manufacturer for the RV, manufactured housing and marine industries is reporting first quarter net income of $30 million, compared to $113 million during the same period a year ago.
The parts maker attributes much of the 73% decrease to the RV industry, which is reporting a 54% drop in wholesale shipments to dealers.
Patrick Industries CEO Andy Nemeth says the company’s diversification allowed it to show a Q1 profit, despite the big drop in the RV sector and a slowdown in the economy. He says its marine end-market sales were up 25%.
“The strength in our marine business, market share gains, and the contribution of acquisitions completed in 2022 partially offset a $454 million decline in RV revenues in the quarter resulting from the continued reduction of production by our RV OEM customers in alignment with decreased retail sales,” the company’s earnings report stated.
Patrick Industries saw a 33% drop in Q1 net sales to $900 million, compared to $1.3 billion during the same period in 2022.
It also saw a drop in revenue in its housing end market, which Patrick attributes to “elevated interest rates, persistent inflation and decreased housing affordability, particularly in the single-family market.”
Click here to full the full earnings report.