Cavco Industries Inc., a Phoenix, Ariz.-based manufacturer of recreational park trailers, manufactured housing and cabins, announced Wednesday (July 29) financial results for the first quarter of its fiscal year 2010 ended June 30.
Net sales for the first quarter of fiscal 2010 totaled $13,595,000, down 62% from $35,509,000 for the first quarter of fiscal year 2009, according to a news release.
Net loss for the fiscal 2010 first quarter was $1,449,000 compared to net income of $853,000 reported in the same quarter one year ago.
Joseph Stegmayer, chairman, president and CEO, said, “Our first fiscal quarter results are representative of the continued challenges faced by the general economy and our industry, which are especially poignant in our core Southwest market area. For the five months ended May 2009, industry-wide reported manufactured home shipments continue to be very low at 380 and 611 in Arizona and California, respectively. In an effort to further streamline our cost structure in this environment, we have moved our Phoenix, Ariz., park model and vacation cabin operation to one of our other nearby factories. The combining factory had excess capacity available for a second production line, which is now being utilized for these specialty products. The transition was completed by the end of the first quarter with no interruption to the customers of that business.”
He continued, “While business conditions are certainly challenging, we are well positioned to expand our presence in our current markets. Meanwhile, we are continuing the previously announced bid process for seven operating Fleetwood Enterprises Inc. manufacturing facilities in as many states across the nation. Through a 50% owned subsidiary, we signed an asset purchase agreement last week, and are now working toward potential ownership in the near term. There are no assurances that this transaction will close or that it will be in the form currently contemplated. We do believe that a successful purchase will be a positive long-term strategic move for both the Cavco and Fleetwood Homes brand names.”