Art’s Way Manufacturing last week reported a decline in its consolidated sales.
As of May 31, the conclusion of its second quarter, sales decreased by 5.2 percent. For the first six months of 2020, sales declined by 6.1 percent.
The company said the three-month dip in revenue was due to a drop in sales of its agricultural products segment and poor market conditions.
Sales of agriculture products in the second quarter declined by 15.6 percent compared to 2019. For the first six months, the decline was 3.6 percent in ag.
Sales in two of its three segments improved. The modular buildings and tools segments saw gains during the same time period, and with “substantial operational improvement,” consolidated gross profit increased by nearly 4 percent for the quarter and 3 percent for the year to date.
“We were heavy on administrative expenses related to finding and training new management staff, implementing an OEM product line and properly rewarding our employees for their continued service during the pandemic as our segments operate as essential businesses,” the company said. “Without these additional administrative expenses, we would have shown significant bottom line improvement for the six months compared to 2019.”
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