EXTON, PA — Omega Flex, Inc. (NASDAQ: OFLX) has reported a decline in net sales and income for the first nine months of 2024 compared to the previous year. CEO Dean W. Rivest announced that net sales totaled $74.7 million, down 10.3% from $83.3 million in the same period of 2023. The third quarter alone saw a 9.5% decrease in sales compared to the previous year.
This downturn is primarily attributed to a significant drop in sales unit volumes, driven by a persistent suppression in the overall market, including a noticeable decline in housing starts. The company has also seen its net income fall to $13.3 million, a 16% decrease from the $15.9 million reported in the same timeframe last year. The third-quarter net income was 17.2% lower than in 2023.
The reduced net income is largely due to the decline in sales, which led to a decrease in production and a consequent lower absorption of factory labor and overhead costs. Additionally, increased overhead expenses, mainly from newly leased facilities, contributed to the financial dip. However, lower raw material costs provided some relief against these challenges. Omega Flex continues to navigate these economic headwinds as it adapts to changing market conditions.
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