Park-model and manufactured-housing builder Cavco Industries Inc., Phoenix, Ariz., announced increased sales and earnings for the fiscal 2005 second quarter, ended Sept. 30.
Net sales for the second quarter rose 25% to $38.6 million from $30.8 million last year. Net income for the second quarter increased to $2.1 million compared with $1.1 million in the same period last year.
For the first six months of fiscal 2005, net sales climbed 24% to $74.6 million compared with $60.3 million last year. Net income for the first six months of this year increased to $3.8 million vs. $2.1 million for the previous year.
Commenting on the results, President and CEO Joseph Stegmayer said, “We are pleased to report improved sales and earnings for the quarter. While total industry shipments of new homes continue to be weak across most of the nation, we did benefit from strong demand for homes in the California market. Our products have also been well received in Arizona and surrounding states although industry shipments continue to be very soft throughout the Southwest.
“From a manufacturing standpoint, higher volume and an improved product mix enabled us to increase productivity and efficiency in our plants, which had a positive impact on profit margins. Offsetting these efficiencies were the increased raw-material prices that we experienced during the quarter. We see no signs of relief from escalating raw-material and purchased-component prices and remain concerned about the adverse impact such cost increases may have on operating results in the months ahead.”