AAON (AAON) Tumbles 10.49% as Earnings Disappoint
AAON tumbled by 10.49 percent on Monday to close at $72.07 apiece following a disappointing earnings performance in the second quarter of the year.
In its updated report, AAON, Inc. (NASDAQ:AAON) said net income declined by 70 percent to $15.5 million from $52 million in the same period last year. Net sales slightly dipped to $311 million from $313 million year-on-year, dragged down by an 18-percent decrease in net sales from its Oklahoma segment.
In the first half of the year, net income decreased by 50.9 percent to 44.78 million from $91.2 million in the same comparable period, while net sales increased by 10 percent to $633.6 million from $575.7 million year-on-year.
'Our second quarter results fell short of our expectations and do not reflect the high standards we set for ourselves as an organization,' said AAON, Inc. (NASDAQ:AAON) CEO Matt Tobolski.
Pixabay/Public Domain
'The underperformance was primarily driven by poor operational execution, mainly associated with the implementation of our new ERP system at our Longview, [Texas] facility. The April go-live of the new system directly impacted production of both finished products and coils at Longview. Since Longview supplies coils to our Tulsa, [Oklahoma] facility, this also limited Tulsa's expected production ramp. We are taking immediate and targeted actions to address these issues, strengthen execution, and ensure we are better positioned to deliver consistent results in the future,' he added.
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