> SUBSCRIBE FOR FREE! 

Coachmen Industries Inc. had its best quarter in four years, posting net earnings of $5.4 million in the three months ended Sept. 30, a 25% increase compared to the third quarter of 2002 and 89% higher than its earnings in the second quarter of this year, according to Claire Skinner, chairman, president and CEO.
Coachmen, which produces modular homes and modular structures in addition to RVs, earned $5.4 million in the third quarter of this year, compared with $4.3 million earned in the same portion of last year and $2.8 million earned in the April-through-June portion of this year.
The New York Stock Exchange-listed company’s third-quarter total sales increased 13% to $200.8 million primarily because its RV sales climbed 20% higher to $136.2 million in the three months ended Sept. 30.
Coachmen’s pre-tax RV-related earnings also increased 11% in the third quarter to $2.9 million, although its RV-related profitability “was hampered by operating inefficiencies related to major material shortages which were substantially resolved in late September,” Skinner reported after the stock market closed today (Oct. 27).
The company’s RV-related pre-tax earnings in the third quarter of 2002 amounted to $2.6 million.
Despite the fact Coachmen opened two more RV production plants earlier this year, in Fitzgerald, Ga., and Middlebury, Ind., the company’s RV order backlog as of Sept. 30 was 78% larger than it was on June 30 and 25% bigger than it was as of last Dec. 31. The company’s RV order backlog is larger because of “the extremely positive dealer response to our new line of 2004 models,” Skinner said.
“We are very optimistic about the balance of the year though material shortages in our RV segment may have a negative impact on future earnings,” Skinner said today. “As an example, we have just received notification of a temporary shortage of a critical valve used in RV ovens, which will impact production and profitability in the fourth quarter.”
Skinner said today she continues to believe Coachmen will earn at least 52 cents per share, or a little more than $8 million, for all of 2003.
She added that Coachmen may need to take a noncash charge in the fourth quarter to reflect goodwill impairment.
For the first nine months of this year, Coachmen earned a total of $5.4 million, a 26% decline from the $7.3 million it earned in the first nine months of 2002.
Coachmen’s total sales in the first nine months of this year amounted to $521.1 million, a 4% increase over its total sales of $501.1 million in the same portion of last year.
The company’s RV-related pre-tax earnings declined 27% in the first nine months of this year to $2.3 million, compared with $3.1 million a year earlier.
Its RV-related sales increased 8% in the first nine months of this year to $359.2 million, compared with $331.8 million a year earlier.