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Phoenix, Ariz.-based Cavco Industries, a major manufactured-home and park-model builder, announced a 22% increase in sales for the first quarter of fiscal year 2005, which ended June 30.
Sales rose to $36 million versus $29.5 million the year before while net income increased to $1.7 million from $942,000 last year, which included a proforma tax provision.
After-tax income from continuing operations increased 73% to $1.7 million or 54 cents per share, versus $986,000, or 32 cents per share, for the same period last year, assuming a proforma income tax provision.
Commenting on the results, Joseph Stegmayer, president and CEO, said, “We are pleased to begin fiscal 2005 with results that exceed the very good performance of the first quarter last year. The increase in sales is attributable to a higher incoming order rate resulting in greater manufacturing shipments, an improved product mix of larger homes with more features, and price increases.
“Selling prices were increased to offset significant inflation in material costs; however we could not keep pace with the rate of increases, which resulted in lower gross profit margins during the quarter.”