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Manufactured home and recreational park trailer producer Cavco Industries Inc. posted an increase in revenue and net income for the its fiscal year 2006 third quarter, ended Dec. 31.
The Phoenix-based firm said sales climbed 17% to $45.3 million compared with $38.8 million in the third quarter of the previous year while net income rose 67% to $3.8 million from $2.3 million.
“The third quarter of fiscal year 2006 was marked by an improved gross profit percentage compared to the third quarter of last year, strong demand for our homes and a solid backlog of orders,” said Joe Stegemayer, Cavco’s chairman, president and CEO. “As anticipated, during the third quarter raw material prices continued to rise and certain building materials were difficult to obtain, regardless of price.”
Stegemayer said the company’s ability to pass through price increases in most markets, aided by long-term vendor relationships, allowed the company to maintain satisfactory margins and to procure at least minimum quantities of needed materials.
Cavco also said it will open production in an idle Texas plant purchased last year to initially build park models and vacation cabins. The company expects to incur losses of between $900,000 and $1.1 million in the first six months of the plant’s opening.
In addition, the company announced that it has appointed Daniel L. Urness as vice president and CFO. Urness, who has been with the company since 1999, had been serving as interim CFO.