Dorsey Posts First Profit In Four Years
January 26, 2000
Benefited from a strong trailer market, improved plant efficiency, and a new market focus, Dorsey Trailers had its first profitable year since 1995 last year.
The company posted a net income of $2.4 million for 1999 versus a net loss of $487,000 for 1998. Sales for 1999 were $172.6 million versus $150.3 million in 1998.
"New trailer sales were up 9.8% in 1999," noted CEO John Pugh. "Gross profit margins continue to trend positively as the company continues to focus on the niche market of customized trailers. Our independent dealer base continues to support and strengthen our focus on the small fleet business and we enter 2000 with a solid backlog."
A $361,000 fourth quarter loss is attibuted to an industry turndown in trailer demand and operating disruptions at Dorsey's Elba, AL, plant due to implementation of a new computerized production system. Fourth quarter 1998 profits were $303,000. Sales for the quarter were $39.2 million versus $39.3 million last year.
Pugh recently told the Atlanta Constitution that, despite slowing industry sales, they hope to remain profitable through cost cutting and recent investments in information technology -- including a 20% stake in Truckbay.com, an Internet venture led by Dorsey chairman Marilyn Marks.