Mayville Engineering Cuts Top End Of FY21 Outlook Citing Supply Chain Challenges

Mayville Engineering Co Inc MEC narrowed its 2021 financial outlook and introduced its 2022 financial outlook.
FY21 Outlook: The company expects net sales of $450 million-$455 million (prior expectations $450 million - $470 million)
The company sees adjusted EBITDA of $46 million-$47 million (prior $46 million-$52 million).
Mayville Engineering noted the supply chain challenges that impacted its customers did, in turn, cause near-term volume reductions for the company.
FY22 Outlook: Mayville Engineering expects net sales of $480 million-$530 million and Adjusted EBITDA of $58 million -$70 million.
“As we look at 2022 and beyond, our long-term business prospects remain strong, despite the negative impact of the supply chain challenges at our customers, especially in the second half of last year,” noted Robert D. Kamphuis, Chairman, President, and CEO.
Fitness Customer Update: Mayville Engineering plans to take steps to reduce operating costs and capital investment at Hazel Park, Michigan facility, wherever appropriate, as it will not go into production on the initially planned date.
The company said it is waiting for more direction from the customer, which no longer expected to be a top 10 customer in 2022.
Price Action: MEC shares are trading lower by 0.83% at $10.81 on the last check Wednesday.