Douglas Dynamics says lack of snowfall significantly impacted Q4 results

The Attachments segment continues to navigate the highly unusual weather trends which began in the fourth quarter of 2022 and continued through the fourth quarter of 2023. Following record low snowfall on the east coast during the 2022-23 snow season, demand was already negatively impacted entering the fourth quarter 2023 equipment retail season. The situation was compounded by fourth quarter 2023 snowfall totals that were nearly 70% below the ten-year average, resulting in the lowest fourth quarter order activity on record, which was more than 60% below the ten-year average. For 2023, initial results indicate Attachments Net Sales will be more than 20% lower than the previous year, with adjusted EBITDA approximately one-third lower than 2022 results. “The lack of snowfall was the reason our 2023 results came in well below our expectations,” explained Bob McCormick, President and CEO. “Douglas has been in the weather business for over 75 years, and we’ve seen our share of low snowfall environments, but the past 15 months have been one for the record books. Until earlier this month, there was a record approximate 700-day gap between measurable snowfalls in important east coast markets such as New York, Philadelphia, Baltimore, and Washington D.C.” McCormick continued, “More than two-thirds of a season’s snowfall typically occurs in the first quarter and I’m glad to say snowfall in the first quarter of 2024 is off to a positive start. We’ve seen a succession of storms across the snowbelt in January, including in core east coast markets.” “Due to the unprecedented nature of the weather patterns we’ve experienced, the equipment replacement cycle has lengthened, likely taking us more than one snow season to return to an average demand environment. Therefore, we made the prudent decision to align our cost structure and effectively manage through this highly unusual period.”