Snowplow blade manufacturer Douglas Dynamics, in a Jan. 30 press release, announced the company's recently implemented 2024 Cost Savings Program, which is primarily in the form of salaried headcount reductions, impacted both its Work Truck Attachments segment and corporate functions. The structural changes are anticipated to yield annual pre-tax savings of $8 million to $10 million, with approximately 75% of the anticipated annualized savings expected to be realized in 2024.
The press release gave details on Douglas Dynamics' preliminary 4Q23 earnings, which showed net sales of $134 million, down 16.2% year-over-year.
In the press release, Sarah Lauber, Executive Vice President and CFO, "As a direct result of the extremely poor fourth quarter 2023 snowfall following the well below average 2022-23 snow season, we are now seeing a lengthened equipment replacement cycle. Under this scenario, we expect approximately half of the weather driven volume decline experienced this year will be recovered in 2024.”
