Milwaukee-based Douglas Dynamics Inc. reported an increase in revenue during the second quarter, but net income fell as the company continues the integration of Dejana Truck & Utility Equipment.
The manufacturer of vehicle attachments and equipment, including snow plows, reported revenue of $139.4 million, an increase of 22.5 percent. The increase was driven by increased revenue from the acquisition of Dejana, which closed in July 2016.
Net income was down 9.7 percent to $14.8 million and earnings declined from 71 to 64 cents per diluted share. Gross profit margin declined from 36.5 percent to 32.3 percent as a result of lower volumes in the work truck attachments segment and generally lower margins in the newly added work truck attachments segment.
“We are pleased with the overall direction of our business and continue to make progress with the integration of the Work Truck Solutions segment. Our results this quarter are in line with our internal expectations and we are seeing a more balanced performance across our more diverse business offering,” said James Janik, Douglas Dynamics chairman, president and chief executive officer.
The work truck attachments segment saw revenue decline from $113.8 million to $105.5 million, a 7.3 percent decrease.
“Our results for the quarter reflect slightly better than expected pre-season performance for our commercial snow and ice products, which is pleasing given the below average snowfall over the last two years. The ongoing stability in the economy, positive dealer sentiment and late season snowfall, plus the positive response to our new product launches, all helped produce a strong quarter,” Janik said.
The work truck solutions segment reported revenue of $34.9 million and $2.5 million in income from operations.
“We experienced more typical demand patterns and continue to make the necessary investments in the business, laying the foundations for sustainable long-term growth,” Janik said.