The Shyft Group reported its third quarter 2022 results Thursday. Shyft Group President and CEO Daryl Adams said that although the environment remains dynamic and challenging, the company experienced positive operating results during the third quarter.
Shyft Group sales grew 4.9%, increasing from $272.6 million to $286.1 million.
“The Specialty Vehicles business produced record profitability while Fleet Vehicles and Services improved sequentially as chassis availability returned to more healthy levels,” Adams said.
Shyft’s Specialty Vehicles segment sales increased $22.7 million, up 27.9% from 2021 at $81.2 million. The company said the strong performance is due to service body and luxury motorhome chassis sales and pricing actions.
High margins in the Shyft specialty vehicle segment were also driven, in part, by lean manufacturing initiatives, Adams said.
“I think the motorhome business is a similar story in terms of just operating efficiency, that we have been able to get into the business in contract manufacturing, particularly with the launch of the F Series,” Adams said “I think that was in Q4. We have seen volume increases. Across the board, we have been able to drive operating efficiencies while also gaining the leverage benefit from growth that we are seeing in the markets.”
The Specialty Vehicle segment backlog on Sept. 30 totaled $128.8 million, up 25.2% compared to 2021.
“Given our third quarter performance, chassis visibility for the balance of the year and our strong backlog, we are tightening our full-year guidance,” Shyft Group Chief Financial Officer Jon Douyard said. “Our balance sheet and liquidity remain strong, and while free cash flow performance has been challenging year-to-date, we expect to see recovery in the fourth quarter as completion and delivery of vehicles improves.”
Adams said the company is seeing some disruptions in the supply chain, especially with the primary chassis supply. However, he said bringing on additional suppliers will help alleviate shortages.
“The chassis supply is impacting the entire industry. We do not see customers jumping from us to others. And so, it is really about when that chassis comes in. I think as new model years come out, our allocations come out for 2023, we will probably see a little bit more movement.”
