Business
Power Solutions International Announces Second Quarter 2021 Financial Results
Q2 Sales Increase of 20% Strong Second Half 2021 Sales Anticipated WOOD DALE, Ill., Aug. 11, 2021 (GLOBE NEWSWIRE) -- Power Solutions International, Inc. (the
About this update from Power Solutions International, Inc.
[{"type":"text","content":"Q2 Sales Increase of 20% Strong Second Half 2021 Sales Anticipated WOOD DALE, Ill., Aug. 11, 2021 (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 second quarter 2021 financial results. Second Quarter 2021 Results Sales for the second quarter of 2021 were $111.5 million, an increase of $18.4 million, or 20%, compared to the comparable quarter last year as a result of sales increases of $17.0 million and $6.4 million in the transportation and industrial end markets, respectively, partly offset by a $5.0 million decrease in the energy end market. The increase in transportation end market sales was primarily due to increased medium duty truck market business and a nominal increase in the school bus market. The increased sales within the industrial end market reflects higher demand for products used across various applications, including those products used in the material handling/forklift, arbor care and industrial cleaning equipment markets. Lower energy end market sales were driven by decreased demand for the Company’s power generation products, especially for demand response products. Gross profit increased by $9.4 million in the second quarter of 2021 compared to the same period last year. Gross margin in the second quarter of 2021 was 11.8% versus 4.1% last year, primarily due to significantly lower warranty expenses, the impact of higher sales, and cost savings driven by actions to improve manufacturing operations, partly offset by material cost increases, higher tariff and freight costs and unfavorable product mix. For the second quarter of 2021, warranty costs were $0.7 million (net of supplier recoveries of $0.6 million), including a $3.3 million benefit for adjustments to preexisting warranties, a decrease of $13.1 million compared to warranty costs of $13.8 million (net of supplier recoveries of $0.6 million) for the three months ended June 30, 2020. The second quarter 2020 warranty costs included $9.3 million of charges for adjustments to preexisting warranties. Operating expenses increased by $8.7 million, or 45%, versus the comparable period in 2020, mostly due to higher selling, general and administrative costs of $8.5 million driven by increased legal costs...