The logo of Miller Industries is seen on a component.Miller Industries' net sales hit $105.8 million in the second quarter this year, which is a more than 21 percent increase from 2012's second-quarter results, the Ooltewah-based towing equipment company announced in its financial results Wednesday.
Second quarter net income was also up, landing at $2.9 million, almost 14 percent higher than the prior year period, which generated $2.5 million. CEO Jeffrey Badgley said increased demand drove sales up.
"Demand continued to improve within our domestic commericial markets resulting in increased production and sales, a continuation of trends witnessed in the first quarter," he said. "Orders for our products increased, driven by these improved market conditions."
The company's gross profit for the second quarter was $11.7 million, which is 11.1 percent of net sales. In the second quarter 2012, net profits hit $10.6 million, 12.1 percent of sales. The quarterly cash dividend was set at 14 cents per share.
The positive results come on the heels of the company's announcement of a product line expansion in Greeneville, Tenn., that will create 58 new jobs. The company will start manufacturing large over-the-road trailers that can haul as many as 11 vehicles.
The new trailers will be manufactured under the Delavan brand as part of a joint venture between Miller Industries and the Lohr Group, a private French company that specializes in transportation. The two groups came together earlier this year in order to bring Delavan products to the United States and Canada.
"During the quarter, we continued to make in-roads from our geographic expansion strategy by securing government-related orders in Europe and other international regions," Badgley said. "While these orders were modest in size, we are pleased with our traction in our international expansion initiatives."
He added that the company expects demand to remain strong and will maintain production levels.