Patrick Industries profit falls amid declining RV shipments
Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
Elkhart-based Patrick Industries Inc. is reporting second quarter net income of $42.4 million, down from $117 million during the same period last year. The company said the drop in profit, as well as net sales, is partially due to a 44% reduction in RV industry wholesale unit shipments.
Patrick Industries manufactures components for the RV, marine, manufactured housing, and various industrial markets.
The company also reported net sales of $921 million, down from a record $1.48 billion in the second quarter of 2022. In addition to the impact of the RV industry, Patrick said the drop in sales could be attributed to declines in wholesale manufactured housing unit shipments and residential housing starts at 30% and 11%, respectively.
CEO Andy Nemeth said the company worked to align its efforts with aggressive dealer inventory management in the RV industry and other markets.
“Through continued prudent balance sheet management, we have reduced our inventories by $113 million from the end of 2022, and $184 million from the second quarter of 2022, generating significant cash flow and further enabling us to execute our strategy,” Nemeth said, noting that last year’s second-quarter earnings were the highest quarterly earnings in the company’s history.
President Jeff Rodino added the company is continuing to invest in its long-term development. The company made progress toward its goals, he said, with the May acquisition of BTI Transport in Elkhart.
You can connect to the full earnings report by clicking here.