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|Power Solutions International, Inc.||201 Mittel Drive|
|Wood Dale, Illinois 60191|
Power Solutions International Announces Second Quarter and First Half 2020 Financial Results
WOOD DALE, Ill., August 14, 2020 Power Solutions International, Inc. (the Company) (OTC Pink: PSIX), a leader in the design, engineering and manufacture of emission-certified engines and power systems, announced second quarter and first half 2020 financial results.
Second Quarter 2020 Results
The novel coronavirus COVID-19 pandemic (COVID-19 pandemic) has resulted in the implementation of significant governmental measures to control the spread of the virus, including quarantines, travel restrictions, business shutdowns and restrictions on the movement of people in the United States and abroad, and the related recent historic decline in oil demand. The Company has experienced a significant overall reduction in demand for its products which is, in large part, attributable to the impact of the COVID-19 pandemic. This reduction in demand has adversely impacted the Companys financial results for the second quarter and first half of 2020. Sales for the second quarter of 2020 were $93.1 million, a decrease of $45.6 million, or 33%, versus the comparable period last year. The sales decrease is comprised of declines of $24.2 million and $22.6 million in the industrial and energy end markets, respectively, partly offset by a $1.2 million increase in the transportation end market. The decreased sales within the industrial end market reflect lower demand for products used across a wide range of applications, with the largest decrease attributable to those products used in the material handling/forklift markets. Lower energy end market sales were driven by decreased demand for the Companys power generation products, particularly for those used within the oil and gas industry, partly offset by higher demand for demand response products. The nominal increase in transportation end market sales were primarily due to increased medium-duty truck market business as the Company began shipping to a new customer, while it also saw higher demand in the terminal tractor market. These increases were partly offset by lower demand for products used within the school bus market.
Gross profit decreased by $21.8 million, or 85%, in the second quarter of 2020 compared to the same period last year. Gross margin in the second quarter of 2020 was 4.1% versus 18.5% last year, primarily due to reduced operating leverage as a result of lower sales, unfavorable product mix, and significantly higher warranty expense related to charges for adjustments to preexisting warranties, largely within the transportation end market, partly mitigated by favorable tariff costs. For the second quarter of 2020,
The following information was filed by Power Solutions International, Inc. (PSIX) on Friday, August 14, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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