Miller Industries Inc. earned 11.2% more revenue in the second quarter than the company did a year ago, but the Chattanooga-based tow truck maker reported a 42.1% drop in net profit during the period due to inflation and supply chain issues which contributed to lower profit margins during the period.
Miller said Wednesday he earned $3.8 million, or 33 cents per share, on net sales of $201.5 million in the three months ended June 30. In the same period a year ago, the company earned $6.5 million, or 57 cents per share, on sales. of $181.2 million.
“Supply chain issues persisted during the quarter, but despite this, we are pleased with our ability to improve profitability as we weather these challenging times,” said William G. Miller, II, Chief Executive Officer of Miller Industries, in a published earnings report. after the market closes on Wednesday. “We continued to experience issues securing certain parts, which impacted the amount of finished goods we could deliver and our overall revenue growth. That said, the price increases we enacted in the first and second quarters of 2022 began to take effect and, as a result, profitability improved sequentially during the quarter, despite a slightly unfavorable product mix which impacted our consolidated gross margin.”
Miller said the company’s backlog grew during the second quarter and “we continue to be extremely encouraged by the demand for our products.”
“We haven’t yet seen a significant slowdown in demand, despite the ongoing conflict in Ukraine,” Miller said. “While the consequences of the war between Russia and Ukraine, and its ultimate effect on our business, are difficult to predict, we are encouraged by the early signals of demand and the fact that the conflict has had so far has a limited impact on our European operations.”
Miller Industries also announced that its board of directors has declared a quarterly cash dividend of 18 cents per share, payable September 12, 2022, to shareholders of record as of the close of business September 5, 2022. This will be the 47th consecutive quarter that the company paid a dividend.
Contact Dave Flessner at [email protected] or 423-757-6340. Follow him on Twitter at @dflessner1.