Elkhart-based Patrick Industries Inc. blames the RV industry "rebalancing" its inventory and bad weather for a weaker second quarter. The company is reporting net income of $27.4 million, compared to $34.9 million during the same period last year.
Patrick Industries manufactures and supplies the RV industry with a variety of components and building products including wall coverings, counter tops, and cabinetry. It also supplies products to the manufactured home and marine industries.
"Our second quarter performance reflects our team’s ongoing efforts and discipline while we navigate continued aggressive dealer inventory rebalancing in the RV market sector and weather-related issues and conditions which hampered certain sectors of the marine and manufactured housing markets,” said Todd Cleveland, chairman and chief executive officer.
Cleveland says net sales and profitability were negatively impacted in the second quarter by the double-digit decline in industry shipments. The RV industry accounts for 56 percent of Patrick Industries’ business.
The company says diversification in its business portfolio helped offset the RV market volatility. “We remain optimistic about RV industry shipments in anticipation of the upcoming RV dealer show season, based on the combination of sustained retail demand and lower inventory levels resulting from continued dealer inventory recalibration,” said Patrick Industries President Andy Nemeth.
Click here to read the full financial report.