Conrad Industries Announces 2023 Results and Backlog
- None.
- The company reported a significant increase in net loss from 2022 to 2023, reflecting challenges in the operating environment. The losses were primarily attributed to fixed price new construction contracts signed before inflation and supply chain issues escalated.
The Company reported net loss of
Our backlog as of December 31, 2023 was
Johnny Conrad, Chairman and CEO stated, "Our results for 2023 reflect a continued challenging operating environment, including challenges associated with continued high steel prices, inflationary price increases in other materials and equipment, supply chain disruptions, a tight labor market resulting in difficulties in retaining and hiring direct labor and rising interest rates during 2022 and 2023. A significant portion of our 2023 losses were related to fixed price new construction contracts that were signed prior to the substantial increases in inflation, higher labor costs and supply chain issues. These factors, along with the complexity of the new construction projects, were the primary drivers of the losses in 2023."
Mr. Conrad continued, "Although we face substantial uncertainties in our markets, we believe we are well-positioned to take advantage of opportunities as market fundamentals improve, due to our shipyard capacity, our investments in improving our shipyards' capabilities and efficiencies, and our experienced team. Bid activity has been good and we believe the jobs we have recently signed include lessons learned on previous jobs, are not as complex and are better priced. We believe some delayed customer orders will move forward as steel prices stabilize or our customers' business opportunities or fleet replacement needs require new vessels. We also remain optimistic about opportunities in our repair and conversions segment."
Mr. Conrad concluded, "Despite the many challenges we have confronted, we remain optimistic about the long-term prospects for our business. We believe that our ability to provide products and services to a variety of customers and to respond to demand for new types of vessels is a competitive strength. The infrastructure, government, pressurized barge, offshore wind and other markets are presenting us with exciting opportunities. We are intently focused on executing our backlog effectively, obtaining new profitable projects and returning our Company to profitability, in order to benefit our stockholders, employees, customers, suppliers and our community."
Conrad Industries, Inc., established in 1948 and headquartered in
Cautionary statement: This press release contains forward-looking statements, which are all statements other than those of historical facts, and reflect our expectations as of the date of this press release about future events. When used in this press release, the words "anticipate," "believe," "estimate," "expect," "project," and similar expressions are intended to identify forward looking statements. Such statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including risks and uncertainties related to changes in steel prices, other material and labor costs, generally high inflation in the
For Information Contact:
Cecil A. Hernandez (985) 702-0195
CAHernandez@ConradIndustries.com
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SOURCE Conrad Industries, Inc.
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