Elkhart-based Patrick Industries Inc. (Nasdaq: PATK) is reporting third quarter net income of $12 million, up from $9 million during the same period last year. Chief Executive Officer Todd Cleveland says the results were supported by continued strength in the recreational vehicle and manufactured housing markets.
The company is also reporting a 43 percent increase in revenue from the RV industry and a 26 percent increase from the MH industry.
"There was optimism and excitement coming out of the recent RV manufacturers’ open houses held in September." said Cleveland. "MH industry growth continues to outpace new housing starts, indicating increased demand. Our industrial revenues grew at a significant pace as we introduce products into adjacent markets and position our industrial sales team to penetrate new markets."
Andy Nemeth, president of Patrick, says the company saw demand levels that increased expectations for the third quarter. As a result, the company launched an initiative to invest in facility improvements, increased capacity and more advanced automation.
"This initiative, which involves an incremental $4.5 million of capital spending starting in the third quarter of 2016 and into 2017, will help ensure we have adequate capacity to meet demand, improve operating efficiencies, and address our customers’ changing needs and buying patterns as they look for new, innovative products in the marketplace."