Milwaukee-based Douglas Dynamics Inc. reported a 53 percent drop in net income during the third quarter as the acquisition of Dejana Truck & Utility Equipment Co. negatively impacted profits.
Earnings for the quarter were down from 68 cents to 32 cents per diluted share, including 17 cents lost on shipments to Dejana that will not be recognized as revenue until the items are sold to end users.
Revenue was up 2.5 percent during the quarter to $123.6 million. The topline result benefited from the acquisition, which closed on July 17.
“This was a very important quarter in our company’s history,” said James Janik, Douglas Dynamics chairman, president and chief executive officer. He noted that the company had introduced a new reporting segment as a result of the Dejana deal and was also continuing to implement its new proprietary management system.
“We are focused on further reducing their already industry leading lead times and driving productivity improvements and expect to achieve great results in the years ahead,” Janik said.
He said the performance was generally within expectations following record performance last year and limited snowfall this past winter.
“While we are diversifying and expanding our portfolio, the snow and ice management business will always be the core of our company. The levels of quality and service we have consistently produced means we have set a very high bar not just for our competitors, but the other business units within our company,” Janik said.