Pressured by ongoing weakness in its core recreational vehicle and manufactured housing markets, Coachmen Industries Inc. reported a 27% decline in third-quarter revenues while significantly narrowing its losses from a year ago.
“As a result of spreading soft conditions in both of our industry segments, sales for the third quarter were off more than 25% from 2006,” said CEO Rick Lavers, who recently replaced Claire C. Skinner. “Nonetheless, it is important to note that we sharply cut our losses in the face of these market conditions, and actually significantly improved our bottom line performance year-over-year by paring operating expenses.”
“Faced with the unusual circumstance of troubled markets in both of our core businesses, which appears will extend into 2007, we have reduced our costs of doing business and our inventories while we have increased our cash position and carry minimal long-term debt. Going forward, we are redefining our direction and have already made a number of market driven decisions to improve our performance results.”
Sales for the third quarter were $130.7 million, 27.4% less than the $180.2 million reported for the same period last year. The Elkhart, Ind.-based company’s net loss was reduced by 62.4% to $3.5 million versus a net loss of $9.3 million the previous year.
For the first nine months, sales were $448.6 million compared with $562.4 million last year while Coachmen had a net loss of $0.3 million versus a net loss of $12.2 million.
The company’s Recreational Vehicle Group reported third-quarter sales of $90.5 million, down 30.3% from the $129.9 million last year. Coachmen cited continued softness in the Class A motorhome sector, coupled with a more challenging towable market.
The RV division generated a pre-tax loss from continuing operations for the third quarter of $7 million compared with a pre-tax loss of $15.5 million for the year-ago quarter. For the first nine months, RV sales decreased to $321.5 million from $425 million last year while pre-tax losses were reduced to $15 million from $23.5 million.