Business
Power Solutions International Announces First Quarter 2022 Financial Results
Power Systems and Industrial End Market Sales Grow by 52% and 33%, Respectively, in the Quarter Gross Profit More Than Doubles; Operating Expense Declines by
About this update from Power Solutions International, Inc.
[{"type":"text","content":"Power Systems and Industrial End Market Sales Grow by 52% and 33%, Respectively, in the Quarter Gross Profit More Than Doubles; Operating Expense Declines by 27% WOOD DALE, Ill., May 16, 2022 (GLOBE NEWSWIRE) -- Power Solutions International, Inc. (the “Company” or “PSI”) (OTC Pink: PSIX), a leader in the design, engineering and manufacture of emission-certified engines and power systems, announced first quarter 2022 financial results. First Quarter 2022 Results Sales for the first quarter of 2022 were $98.9 million, a decrease of $1.2 million, or 1%, versus the comparable period last year, a result of a sales decline of $25.8 million in the transportation end market, partly offset by increases of $13.1 million and $11.5 million in the power systems and industrial end markets, respectively. Further, overall sales in the first quarter of 2022 continued to reflect supply chain challenges that impacted the Company’s ability to timely meet certain orders. The decreased sales within the transportation end market were primarily attributable to lower sales in the medium duty truck market, coupled with lower demand for school bus products. Higher power systems end market sales were primarily due to increased sales of power generation products, particularly to customers serving the demand response markets and to customers with traditional exposure to the oil and gas markets. Higher industrial end market sales are primarily due to increased demand for products across various applications, with the largest increase attributable to products used within the material handling/forklift market. Gross profit increased by $9.6 million, or 136%, during the first quarter of 2022 as compared to the prior year. Gross margin in the first quarter of 2022 was 16.9%, an increase of 9.8 percentage points compared to 7.1% last year, primarily due to lower warranty expense, among other items. For the first quarter of 2022, warranty costs were a benefit of $0.3 million, a change of $7.1 million compared to warranty costs of $6.8 million last year, due largely to favorable adjustments to preexisting warranties during the first quarter of 2022. A majority of the warranty activity is attributable to products sold within the transportation end market. Operating expenses decreased by $6.2 million, or 27%, versus the comparable period in 2021, due to lower selling...