Coachmen Industries Inc. reported its RV sales revenue plunged 43% during the fourth quarter, although it was able to report a marginal profit for the full year 2000.
The company, which has launched a program to diversify into modular housing and other modular buildings, lost $7.8 million during the three months ended Dec. 31, compared with a profit of $3.7 million earned a year earlier.
For the full year 2000, Coachmen earned $2.1 million, compared with $29.5 million earned during 1999.
Coachmen’s total fourth quarter sales declined 30% to $144.1 million and its full year 2000 revenues were down 16% to $710 million.
The company’s fourth quarter RV sales fell 43% to $94.8 million and its full year 2000 RV revenues were down 22% to $538.4 million.
Contributing to the fourth quarter loss was a pre-tax charge for factory consolidations, the liquidation of four company-owned RV retail dealerships and write-downs of certain real estate held for sale. The charge amounted to $2.7 million pre-tax.
The consolidations included closing a towable RV assembly plant in Oregon and moving all towables production to Indiana, and combining the Shasta RV operation into the Coachmen RV division.
Coachmen also took a $3.9 million pre-tax charge to account for excess inventories, warranty liabilities and estimated losses under repurchase agreements.
“Although these results are clearly not acceptable, continued implementation of our strategic (diversification) plan has enabled the company to remain profitable for the year and better positioned for improved performance in the competitive environments in which we operate,” said Claire Skinner, chairman, president and CEO.
She said over half of the RV units displayed by Coachmen and the industry’s national trade show in Louisville in November “were either brand new or dramatically changed from the pervious year.”
Consequently, Skinner is confident Coachmen RV is “well positioned to respond quickly as the market improves.”