This success in net sales—at about $37.5 million in Q3 2023 against $29.2 million in Q3 2022—occurred "despite the ongoing challenges presented by OEM labor strikes, raw material availability, supply chain challenges and the resulting production volatility."
"For the quarter, the increase was due to higher volumes and favorable mix in SUV and light truck platforms despite some economic headwinds including the UAW labor strike, which had a modest impact to production schedules across certain OEMs and Tier 1 suppliers," Bitsakakis said.
As stated, net sales for ADG registered at $21.2 million for the recent quarter, down 10 percent from the $23.6 million that ADG generated in Q3 2022.
Year-to-date, the decrease was about 33.1 percent, down to $75.8 million against $113.4 million in net sales generated in the first nine months of 2022.
ADG experienced "residual softness ... making for a challenging quarter."
"The decrease in Q3 2023 was primarily the result of modest decreases in volume in the industrial sector, and the decrease year-to-date was primarily the result of the completion of the large HHS nitrile examination glove order in the early part of 2022, in addition to softness experienced in the molded defense products and the industrial lines of business," Bitsakakis said.
The business segment also has been hindered by a delay in delivery of Husky 2G vehicles, "due to ongoing delays in funding and turnover in customer personnel, creating a lack of certainty to the scope, timing and the terms and conditions of these awards."