Patrick Industries has reported a marine sector revenue drop of 32% to $174 million for the last quarter of 2023.
Estimated wholesale powerboat shipments decreased by 24% compared to the same period in 2022, while full year wholesale powerboat units decreased by 5%.
Across all sectors, Patrick saw fourth quarter net sales of $781 million, a drop of 18% as a result of lower OEM wholesale unit shipments in its end markets and lower pricing passed on to our customers to reflect changes in commodity costs.
Net income was $31 million, a decrease of 23%, compared to $40 million in the same period of 2022.
The company also saw an inventory reduction of $158 million from year-end 2022.
Supplier of choice
“I am extremely proud of our team’s achievements throughout 2023 as they relentlessly focused on driving and delivering strong results in the face of challenging market conditions, with an unwavering commitment to our goal to be the supplier of choice to OEMs in the Outdoor Enthusiast and Housing markets,” said Andy Nemeth, Patrick Industries CEO.
“Our team performed impressively, despite RV wholesale unit shipments hitting ten-year lows in 2023 and emerging marine headwinds that resulted in an almost 30% decline in marine wholesale shipment run rates in the second half of 2023 compared with the first half of the year.”
And he added that the recent acquisition in in January 2024 of Sportech, the company’s largest acquisition to date, provides the company with a solid platform for future organic and strategic growth and enables further acceleration of the company’s momentum within the outdoor enthusiast space.
The company achieved an operating margin of 7.5% in 2023.