The Shyft Group has appointed John Dunn its president and CEO, effective Oct. 26.
Dunn, who previously served as president of Shyft’s Fleet Vehicles and Services, will also join the board of directors. In connection with the company’s previously announced leadership transition plan, Daryl Adams, current president and CEO, will step down from his role and resign from the board. Adams will remain with the company in an advisory capacity for six months to ensure a smooth transition.
“I am proud of how our team has transformed Shyft into an industry leader in our attractive end markets of last-mile delivery and infrastructure,” Adams said. “Since I joined Shyft in 2014, we have demonstrated our ability to execute through changing market conditions while driving operational improvements, investing in innovation and delivering value to our customers and shareholders. Shyft is well-positioned with a growing roster of innovative brands with strong prospects. I look forward to working closely with John, ensuring a seamless leadership transition.”
“The Shyft Board is pleased to name John as CEO of Shyft following a deliberate and comprehensive succession process,” said James Sharman, chair of The Shyft Board of Directors. “John is a proven leader with a track record of building and driving high-performing teams. He has extensive experience in manufacturing, operations, product development and customer relations. We look forward to collaborating with John to deliver shareholder value as we enter the next phase of our transformation.”
“I am honored that the Board has entrusted me to lead Shyft as we accelerate our strategic vision, enhance product quality and innovation, and expand our customer reach,” Dunn said. “I am confident in our team’s resilience and ability to deliver great products across our leading brands, increase shareholder value and strengthen Shyft’s workplace culture.”
“On behalf of the Board and shareholders, I would like to thank Daryl for his many contributions over nine years at Shyft. Under his tenure, the company undertook an ambitious business transformation, and we are grateful for his leadership and dedication,” Sharman said.
Dunn joined Shyft in January 2023 as president of Fleet Vehicles and Services. Prior to joining Shyft, he served as president and CEO of Americas for Plastic Omnium, a global frontrunner in mobility solutions with €9.5 billion of revenue in 2022. He previously held various leadership positions at Brose, including president of North America, a global Tier 1 automotive supplier that equips half of the new cars worldwide across its 68 locations.
In addition, The Shyft Group revealed its third quarter 2023 financial results.
For the third quarter of 2022 compared to the third quarter of 2021, sales hit $286.1 million, an increase of $13.5 million or 4.9%, from $272.6 million.
Adjusted EBITDA was $27.1 million, or 9.5% of sales, a decrease of $6.6 million, from $33.7 million, or 12.4% of sales. Results include $7.7 million of EV development costs.
Adjusted net income was $18.6 million, or $0.53 per share, compared to adjusted net income of $22.9 million, or $0.63 per share in the third quarter of 2021.
“I am incredibly proud of the Shyft Group team as we delivered positive operating results, with strong execution in an environment that remains highly dynamic and challenging. The Specialty Vehicles business produced record profitability while Fleet Vehicles and Services improved sequentially as chassis availability returned to more healthy levels,” said Adams. “The excitement around our Blue Arc Solutions remains extremely high as demonstrated by our initial pre-order and positive customer feedback. We are pleased with our progress to date and believe we are on-track for mid-2023 production.”
“Given our third quarter performance, chassis visibility for the balance of the year, and our strong backlog, we are tightening our full year guidance,” said Jon Douyard, CFO. “Our balance sheet and liquidity remain strong, and while free cash flow performance has been challenging year-to-date, we expect to see recovery in the fourth quarter as completion and delivery of vehicles improves.”
