Business
Power Solutions International Announces Second Quarter 2023 Financial Results
Gross Profit increased by 47%, EPS increased $0.22 or $0.28 for the Quarter,Operating Cash Flows increased $34.4 million; Debt decreased $20.7 million WOOD
About this update from Power Solutions International, Inc.
[{"type":"text","content":"Gross Profit increased by 47%, EPS increased $0.22 or $0.28 for the Quarter,Operating Cash Flows increased $34.4 million; Debt decreased $20.7 million WOOD DALE, Ill., Aug. 14, 2023 (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 2023 financial results. Second Quarter 2023 Results Sales for the second quarter of 2023 were $121.9 million, an increase of $1.4 million, or 1%, compared to the second quarter of 2022, as a result of sales increases of $7.5 million and $6.8 million in the power systems and transportation end markets, respectively, partially offset by a decrease of $12.9 million in the industrial end market. Higher power systems end market sales are primarily due to increased demand for products across various applications, with the largest increases attributable to products used within the enclosure/packages market as well as oil and gas products, partially offset by demand response products. The increased sales within the transportation end market were primarily attributable to higher sales in the medium duty truck market and school bus products. Decreased industrial end market sales are primarily due to decreases in demand for products used within the material handling and arbor care markets. Gross profit increased by $8.6 million, or 47%, during the second quarter of 2023 as compared to the same period in the prior year. Gross margin in the second quarter of 2023 was 22.1%, an increase of 6.9 percentage points compared to 15.2% in the last year, primarily due to improved mix, pricing actions and freight cost management, partially offset by increased warranty expense. For the three months ended June 30, 2023, warranty costs were $3.4 million, an increase of $1.2 million compared to warranty costs of $2.2 million in the same period last year, due largely to increased charges for engines sold within the transportation market, mainly attributable to changes in estimates for preexisting warranties. A majority of the warranty activity is attributable to products sold within the transportation end market in prior years. Selling, general and administrative expenses increased during the second quarter of 2023 by $0.6 million, or 6%, compared to the pr...