Patrick Industries reported second quarter net sales of $1.04 billion, essentially flat compared with the same period last year, as growth in its marine, powersports and housing end markets largely offset a double-digit percentage decline in RV revenue tied to a drop in wholesale unit shipments.
The Elkhart, Ind.-based component supplier’s earnings report comes as it moves toward a previously announced all-stock merger with LCI Industries.
“Our second quarter results underscore the strength and resilience of our diversified platform, the continued dedication of our team, and our focus on continuing to drive both organic and strategic growth despite uncertain and volatile market conditions,” Patrick CEO Andy Nemeth said in the release.
Marine was Patrick’s strongest-performing sector in the second quarter, with revenue rising 22% to $191 million, even as estimated wholesale powerboat industry unit shipments were flat, the company said. Estimated content per wholesale powerboat unit, on a trailing 12-month basis, increased 22% to $4,883 compared with the prior-year period and rose 5% from the first quarter.
Net income rose 34% to $43 million, as operating income and operating margin declined from the prior-year period, which the company attributed partly to the RV shipment decline, higher fuel prices and merger-related costs.
Looking ahead, Nemeth said Patrick is not banking on a near-term market rebound but is instead focused on cost discipline, growth initiatives and its pending merger with LCI Industries.
