America’s biggest towing equipment maker hauled in less profit last year despite double-digit sales gains and record-high demand for its products.
The Ooltewah-based Miller Industries said Wednesday that supply chain interruptions and higher material costs cut its 2021 net income nearly in half from the previous year.
Miller Industries reported net income for all of 2021 of $16.3 million, or $1.42 per share, on sales of $717.5 million. In 2020, the company earned $29.8 million, or $2.62 per share, on sales of $651.3 million.
Fourth quarter profits were down 77.4% despite a 13.1% gain in sales compared with the same period a year earlier.
“We continued to experience supply chain challenges and inflation pressures during the fourth quarter,” company CEO William G. Miller II said in an earnings report issued after the market closed Wednesday. “While we are unsure of the timing of a resolution to the supply chain constraints, we believe we have taken the necessary operational actions and pricing initiatives to offset inflationary pressures as we remain committed to providing excellent service to our customers, distributors and stakeholders.”
Staff Photo / Employees put massive trucks together in the large wrecker assembly shop at the Ooltewah, Tenn., branch of Miller Industries Inc., on Sept. 12, 2013.Miller Industries manufactures a variety of light- to heavy-duty wreckers, car carriers and rotators under such brand names as Century, Vulcan, Chevron and Holmes. Miller Industries also operates international brands with Boniface in Britain and and Jige in France.
“Demand remains at all-time highs,” Miller said in the company’s earnings report. “Given the favorable macro dynamics and strong backlog levels, we remain confident about our long-term business prospects.”
The company said its international operations improved as European pandemic restrictions eased. But, Miller said, “The impact of the current military conflict between Russia and Ukraine has added an additional negative impact on our raw material availability and pricing.
“We will continue to focus on opportunities in front of us to generate long-term shareholder value,” he said.
The company also announced Wednesday that its board had declared a quarterly cash dividend of 18 cents per share, payable March 28, 2022, to shareholders of record at the close of business on March 21, 2022. That will be the 45th consecutive quarter the company has paid a dividend.
Ahead of the earnings announcement, shares of Miller Industries rose Wednesday by nearly 2.6% to close at $30.42 per share. But the stock price for Miller Industries is still down by 31.5% from a year ago.
– Compiled by Dave Flessner