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Shyft Group net income plunges 67% in Q2 amid supply chain constraints

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Specialty vehicle manufacturer Shyft Group Inc. saw decreases in both net income and revenue in the second quarter due to supply chain disruptions and inflationary pressures.

Net income plunged 67 percent to $5.3 million, the company said in its second-quarter earnings report Thursday. Sales slipped 4.8 percent to $232.2 million in the same period.

Shyft CEO Daryl Adams told investors on a conference call Thursday morning that chassis supply disruption continued to disrupt the company’s fleet vehicle business. He said supply disruptions peaked for the company in April but steadily eased in May and June.

“The improvement came from the release of units that were produced but on hold at the end of the quarter as well as increased production levels at the OEMs,” Adams said. “While the OEMs are not yet back to full production, the improvement does give us confidence as we look out into the second half of the year.”

Shyft Group rebranded from Spartan Motors in February 2020 and sold off its emergency response device business. The company now produces multistop trucks for organizations such as the U.S. Postal Service and Amazon.

Shyft Group shares rose 4.6 percent to $24.06 in afternoon trading Thursday.

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