Miller Industries Inc. temporarily shut down its plants during the current COVID-19 crisis to implement new safety measures, but the Ooltewah-based towing equipment maker has resumed production and company officials said Wednesday the company is positioned to weather the current economic downturn.
Miller Industries said its first quarter net income fell by 37.3% from a year ago on sales that were down 10.7%. The company reported net income of $5.4 million, or 48 cents per share, on sales of $176.1 million during the first three months of the year.
Gross profit for the first quarter of 2020 was $18.5 million, or 10.5% of net sales, compared to $22.6 million, or 11.5% of net sales, for the first quarter of 2019.
“During March, we implemented several safety measures and initiated a contingency plan to ensure the health and safety of our workforce, suppliers, and customers and adjusted our operations accordingly, which necessitated a temporary shutdown at our manufacturing facilities,” Miller Industries’ CEO Jeff Badgley said. “Our first quarter revenue declined by 10.7% year-over-year due to such production modifications and shutdown, as well as disruptions in our supply chain and delayed deliveries associated with the COVID-19 pandemic during the last few weeks of March. We have adjusted our business operations in order to resume production. Miller Industries has been classified as an essential business and will continue to provide best-in-class products to our customers in order to keep the economy moving forward during this challenging time.”
The company also announced that it has declared a quarterly cash dividend of 18 cents per share, payable June 15, 2020 to shareholders of record at the close of business on June 8, 2020.
“Our balance sheet and liquidity are strong and we are confident in our ability to navigate the business through this crisis,” Badgley said.