Patrick Industries today reported third-quarter sales of $566.2 million, a 2 percent decrease compared to the same period a year ago. Net income dropped to $21.3 million compared to $27.9 million a year ago.
The company said in a statement that sales in three of its four primary markets, including marine, declined during the quarter. Marine sales, which represent 13 percent of total sales, were off by 7 percent for the quarter. Its largest market, recreational vehicles, which represents 55 percent of sales, was off by 13 percent.
“Our financial results in the third quarter were negatively impacted by continued RV dealer inventory rebalancing, as dealers position themselves for the upcoming 2020 model selling season,” said Todd Cleveland, Patrick CEO, in the statement. “In addition, following weather-related softness in marine retail sales in the first half of 2019, we saw inventory recalibration by marine dealers in the third quarter of 2019.”
Despite lower third-quarter sales, the company’s “diversified market portfolio” helped compensate for “pockets of volatility related to the pontoon and aluminum fish sectors of the marine market as a result of adverse weather conditions in the first half of the year,” said Andy Nemeth, Patrick president, in the statement.
For the first nine months of 2019, marine sales were up 34 percent. Marine powerboat content per retail unit (on a trailing 12-month basis) for the third quarter of 2019 increased 54 percent to an estimated $1,624 from $1,054 for the third quarter of 2018.
"We believe that retail demand across all of our end markets continues to remain fundamentally strong, driving RV and marine dealer inventories down, and indicating a potential return to a more direct relationship between wholesale shipments and retail unit sales for the upcoming 2020 selling season,” Nemeth said.