With labor and supply shortages lingering, Miller Industries Inc. on Thursday reported a 41.3% drop in net income and warned that supply chain problems could remain in the coming months.
The Chattanooga-based tow truck maker said it earned $3.8 million, or 34 cents per share, on sales of $164.7 million in the three-month period ended Sept. 30. In the same period a year earlier, Miller Industries earned $6.6 million, or 57 cents per share, on sales of $168.7 million.
"Supply chain challenges and inflationary pressures increased throughout the quarter, making it increasingly difficult to secure certain parts to complete finished goods," said Jeffrey I. Badgley, co-chief executive officer for Miller Industries. "However, we are pleased with our performance during the quarter despite these challenges and are encouraged by the demand trends in our end-markets. That said, we are unsure of when the supply chain disruptions and labor headwinds will subside, and we will continue to leverage all of our resources to ensure that we meet customer demand."
With product demand near all-time highs, Badgley said, "We feel confident about our long-term business prospects," noting the improvements in Europe as pandemic restrictions began to ease.
"As we move towards and into 2022, we believe the company is well-positioned to take advantage of growth opportunities when supply chain-related issues eventually subside," he said.
The company also announced that its board of directors declared a quarterly cash dividend of 18 cents per share, payable Dec. 13 to shareholders of record at the close of business on Dec. 6. The dividend payments will be the 45th consecutive quarterly dividend paid by Miller Industries.
- Compiled by Dave Flessner