Patrick Industries Extends Production Suspensions
Elkhart-based Patrick Industries Inc. (Nasdaq: PATK) is updating its production schedule amid the coronavirus pandemic. The manufacturer says it is extending its operational suspensions from one to two weeks by an additional one to three weeks.
Andy Nemeth, chief executive officer of Patrick, says the estimated length of the suspensions is being determined on a plant-by-plant basis. He adds certain plants throughout the country have remained active and operational.
The company had previously announced that it was implementing cost containment and financial management measures to prioritize the safety and well-being of its employees.
Patrick says wage reductions for its executive management team and other salaried employees has already been implemented and has furloughed certain team members due to stay at home orders. Additionally, the company says it has reduced quarterly fees paid to its board of directors and has also decreased non-essential spending.
Nemeth added, “Our capital structure and financial position remains strong with ample liquidity and availability to manage this crisis for the foreseeable future, and we remain poised to quickly pivot and execute on our strategic plan and initiatives once stability returns to our markets. We believe we are well-positioned to drive our business and execute off of our operational and financial platforms and high variable cost business model to continue to support the needs of our customers and be able to take advantage of opportunities in our markets as they present themselves.”
Patrick, a major manufacturer and distributor of component and building products, says it will continue to evaluate the environment surrounding the COVID-19 pandemic and is prepared with tiered plans that could be enacted if needed.