Specialty vehicle manufacturer The Shyft Group Inc. closed out 2022 with fourth quarter sales climbing 8.9% to $302 million, pushing the year-end sales to $1 billion, a 3.6% improvement from 2021.
“This past year presented numerous challenges in our supply chain that impacted our operations, but I'm proud of the team's ability to execute and close out the year on a high note, with solid year-over-year growth in both sales and adjusted EBITDA in the fourth quarter,” President and CEO Daryl Adams said in a conference call with investment analysts. “I remain confident in how we have strategically positioned the company in terms of the end markets that we serve.”
Specifically, Adams pointed to “long-term favorable demand trends” for North America parcel vehicles with the ongoing shift to e-commerce.
“According to industry estimates, domestic parcel volumes will continue to drive demand for our delivery vans,” he said. “We are cautious in the near-term outlook as customer feedback and external announcements have been mixed, given macroeconomic conditions, which may create uncertainty with fleet operators and influence their near-term capital spending plans.”
While infrastructure-related opportunities will benefit the company’s Specialty Vehicle business, the RV industry slowed in 2022, driving up dealer inventory is smaller units and limiting dealers’ ability to stock large, more expensive motorhomes.
EV update
Adams added that he is “excited” about progress on the group’s Blue Arc EV program.
“We continue to receive favorable customer feedback and positive results from our developmental testing, which gives us confidence that Blue Arc will help lead the evolution of commercial fleets toward zero-emission vehicles in the coming years,” he said. “While the initial development efforts have focused on Class III, due to the enthusiasm around our vehicle, we've accelerated our product roadmap. As a result, we have made significant progress on developing a Class 5 cab chassis with flexible body options.
“The Class 5 cab chassis will be on display at the NTEA Work Truck Week in March, and the Blue Arc team looks forward to showcasing this important product.”