Patrick Industries reported third quarter net sales of $866 million, a decrease of $246 million, or 22%, from $1.11 billion in the third quarter of 2022. The company said the decline was driven primarily by a reduction in unit shipments and lower pricing passed on to customers to reflect materials costs.
The marine segment comprised 24% of revenue for the quarter at $205 million, a 24% decrease compared with a year ago. Estimated wholesale powerboat industry unit shipments decreased 23%, and estimated content per wholesale powerboat unit increased 3% to $5,009.
“Our operating results for the third quarter of 2023 are a reflection of our team’s thoughtful discipline to manage our business and drive resilient operating margins in a very dynamic environment, despite the continued reduction in shipments across our end markets,” CEO Andy Nemeth said in a statement.
“We have reduced our overall cost structure and reduced our inventory by $150 million from year-end 2022,” he added. “Our team’s focus on labor management, automation and continuous improvement has helped enable us to dynamically adjust our business to current market demand and industry trends while remaining opportunistically nimble and poised, ready to pivot when opportunity presents itself or upon an uptick in our markets.”
Operating income of $71 million in the third quarter was down from $93 million in the year-prior quarter. Operating margin of 8.2% decreased 10 basis points compared with 8.3% in the same period a year ago, primarily due to lower net sales, absorption on certain fixed distribution expenses, and an increase in non-cash amortization due to acquisitions.
Net income decreased 33% to $40 million compared with $59 million a year ago. Diluted earnings per share of $1.81 decreased 26% compared with $2.43 in 2022.
