Release Date: April 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: During the past two seasons with lower snowfall totals in attachments, have you noticed any changes in the competitive environment?
A: Bob McCormick, President & CEO of Douglas Dynamics, noted that the company's market share has remained very stable despite the low snowfall, with growth in non-truck segments adding to market share. The competitive landscape is considered stable.
Q: Were there any impacts from the UAW strike on Q1 results, and could solutions performance have been better without these impacts?
A: Sarah Lauber, EVP & CFO, mentioned that the impact of the UAW strike was minimal, similar to previous chassis delays. The company managed to maintain decent flow through their upfit centers despite some chassis delays.
Q: How do you see the solutions margins playing out for the rest of the year given their strong performance this quarter?
A: Sarah Lauber expects full-year margins for solutions to improve over 2023, with the first half of the year performing better than the previous year, and the second half expected to be more flat compared to last year.
Q: What was the customer reaction to new products at the NTEA show, and do you see growth tailwinds from these this year?
A: Bob McCormick highlighted positive dealer sentiment, especially for the new hydraulic pusher plow product. However, he noted that it might take some time for dealers to work through existing inventory before fully adopting new lines, though the long-term prospects are promising.
Q: What are you hearing from dealers about the financial health of end-users, especially considering multiple years of low snowfall?
A: Sarah Lauber indicated that dealer feedback has been stable and not dramatically changed due to weather patterns. The company's strong dealer partnerships have helped maintain a steady business environment.
Q: Have backlogs increased at Dejana this year, and what is the overall order cadence?
A: Sarah Lauber reported that orders and backlogs in solutions remain very strong, with only about a 10% decrease from record highs, indicating sustained demand.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.