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Soft sales and competive pressures in Patrick Industries Inc.’s core recreational vehicle and manufactured housing markets “eroded margins” and impacted earnings during the component supplier’s fiscal third quarter and nine months.
“Exclusive of the increased demand due to the destruction from the hurricanes in the South, market conditions in the manufactured housing and recreational vehicle industries have been fairly soft for the year,” said President and CEO Paul E. Hassler.
Net sales for the third quarter, ended Sept. 30, increased 1.1% to $81.1 million compared with $80.2 million a year ago while net income decreased to $139,000 from $667,000.
For the nine months, revenues rose 6.6% to $239.5 million from $224.6 million the previous year and net income fell to $246,000 compared with $700,000.
Elkhart, Ind.-based Patrick said sales to the RV industry, which represents 29% of the company’s revenue base, decreased approximately 1% through September while manufactured housing revenues increased around 14%. Hassler said fourth-quarter sales in both sectors would be boosted by OEM demand to supply emergency housing for hurricane victims.
“As we head into the fourth quarter, we are seeing increased order rates as a direct result of the ramp up of production from our major customers due to the number of units ordered from FEMA,” Hassler said. “While levels of material supply required has been difficult to secure based on the volume of FEMA units needed in the short period of time, our vendors have been very supportive in partnering with Patrick to help meet customer needs.”