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Burnham’s net sales rise as gross profit drops
Paula Wolf//February 18, 2022
Lancaster-based Burnham Holdings Inc. reported an increase in net sales last year, combined with a decline in gross profit as material prices surged.
Burnham is the parent company of subsidiaries that are major domestic manufacturers and sellers of boilers and related HVAC products and accessories for residential, commercial and industrial use.
Net sales reached $218.5 million in 2021, which was $31 million than the year before, according to a release. That was due to more normal winter weather along with improved economic conditions, as residential heating equipment demand recovered from the negative impact of COVID-19.
Gross profit was $35 million, a decline of $3.5 million versus 2020.
“Profitability was negatively impacted by significant difficulties in hiring and retaining qualified employees, and multiple supply chain issues resulting in numerous shortages of critical materials, which negatively impacted production capacity and efficiencies, particularly at Casting Solutions, our gray iron foundry which supplies critical parts to our cast-iron boiler businesses,” the release explained.
Purchased material price inflation that began in the fourth quarter of 2020 continued in 2021, leading Burnham’s subsidiaries to raise prices throughout the year to recover increased costs and maintain profitability.
Burnham also announced that Nicholas Ribich has been appointed vice president, chief financial officer and secretary of the company, effective April 1. Ribich previously served in financial management positions with Harley-Davidson, Johnson Controls and Arthur Andersen LLP.
He will replace Dale Bowman, who is retiring after a 26-year career at Burnham.
