Chattanooga-based Miller Industries posts earnings drop

Chattanooga-based Miller Industries posts earnings drop

November 8th, 2012 by Staff Report in Business Around the Region

John Woods at the Miller Industries manufacturing facility in Ooltewah makes a weld on a boom being installed on a large wrecker that will be sent to Africa.

Photo by John Rawlston/Times Free Press.

Chattanooga-based tow truck maker Miller Industries on Wednesday reported lower third-quarter profits on a drop in sales.

Net income in the quarter was $2.9 million including income tax benefits, or 26 cents per share, compared to $4.9 million, or 41 cents per share, a year ago, the company reported in a news release.

Net sales were $78 million in the latest period versus $96.8 million for the third quarter 2011.

Results in the third quarter did not include any government-related orders, which represented 22 percent of sales in the year-ago period, according to Miller.

Jeffrey I. Badgley, the company's chief executive, said Miller has continued to execute even though the economic environment is soft and challenging.

"While tough market conditions affected our sales and growth initiatives, our domestic sales performance remained steady and margins were stable despite lower sales volumes," he said.

Miller also announced it has declared a quarterly cash dividend of 13 cents per share payable Dec. 17 to shareholders of record at the close of business on Dec. 10.