ELKHART, Ind. - Wood components firm Patrick Industries reported a whopping 42% rise in net sales for the third quarter of 2016. Net sales for the third quarter increased $89.4 million to $304.2 million from $214.8 million in the same quarter of 2015.
The company, a major manufacturer and distributor of building and component products for the recreational vehicle ("RV"), manufactured housing ("MH") and industrial markets, attributes nearly 43% of that increase to Patrick's revenue from the RV industry, which has picked up considerably and reflects contribution from 2015 and 2016 acquisitions.
Revenue from the MH industry, which represented 14% of the Company's third quarter 2016 sales, increased 26%. Patrick estimates that wholesale unit shipments in the MH industry rose approximately 5% from the third quarter of 2015. Additionally, sales to the industrial markets increased 50% compared to the prior year period. The industrial market sector, which is tied primarily to residential housing and non-residential construction spending, accounted for 13% of the company's third quarter 2016 sales.
"We are pleased with our third-quarter revenue growth that was supported by our acquisition and strategic growth initiatives, as well as continued strength in the RV and MH markets," said Todd Cleveland, Chief Executive Officer. "In addition, there was optimism and excitement coming out of the recent RV manufacturers' open houses held in September.MH industry growth continues to outpace new housing starts, indicating increased demand. Our industrial revenues grew at a significant pace as we introduce products into adjacent markets and position our industrial sales team to penetrate new markets."
Cleveland also noted that the company experienced demand levels during the third quarter that exceeded its expected seasonal demand patterns, particularly in the RV industry. "In anticipation of continuing strong demand in the fourth quarter and in preparation for continued growth into 2017, we launched a strategic capital expenditure program in the third quarter of 2016 centered around investment in facility improvements, increased capacity, and more advanced automation," he said. "This initiative, which involves an incremental $4.5 million of capital spending starting in the third quarter of 2016 and into 2017, will help ensure we have adequate capacity to meet demand, improve operating efficiencies, and address our customers' changing needs and buying patterns as they look for new, innovative products in the marketplace."
Patrick Industries is a major manufacturer of component products and distributor of building products serving the recreational vehicle, manufactured housing, kitchen cabinet, office and household furniture, fixtures and commercial furnishings, marine, and other industrial markets and operates coast-to-coast through locations in 16 states.
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