Jason Industries sales fall 9.6 percent
Jason Industries reported first-quarter sales of $84.0 million decreased 9.6 percent from $93 million in the same period last year.
The results included a positive 5.7 percent impact from the acquisitions and a negative 1.0 percent from foreign currency translation. Organic sales declined 14.3 percent primarily due to overall weaker end-market demand in both Engineered Components and Industrial.
A net loss of $13.7 million, or 50 cents per diluted loss per share, deepened from a loss of $5.3 million, or 28 cents, in last year's first quarter.
The loss includes $4.5 million of transaction-related and strategic alternatives expenses and $1.2 million of integration and restructuring costs recorded within selling and administrative expenses.
“We delivered historically high safety, quality and service performance and secured new turf care platforms in the quarter. However, both segments experienced reductions in OEM build schedules, further channel inventory destocking, and weakening end market demand during the quarter, with accelerated volume decline at the end of March,” said Brian Kobylinski, chairman and chief executive officer of Jason.
Industrial net sales of $48.4 million decreased 2.7 percent. Organic sales decreased 11.8 percent driven by lower volumes due to weaker industrial markets in North America, Europe, and Asia from decreased demand and the impacts of the COVID-19 pandemic.
Engineered Components net sales of $35.6 million decreased 17.5 percent, due to softer demand from OEM customers in heavy industry, turf care, and power sports seating.
Jason announced earlier this week that it plans to file for Chapter 11 bankruptcy protection as part of a restructuring agreement reached with key lenders.
INDUSTRIAL SUPPLY MAGAZINE
The March/April issue of Industrial Supply magazine features an in-depth cover story about Joyce Lansdale and Vallen. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and David Kahle, as well as interviews with numerous product and distribution industry experts.
