Coachmen Industries Inc. reported a narrower net loss for its second quarter, ended June 30, as “the unexpectedly rapid and deep fall in the RV markets” offset profits in the company’s housing group.
Richard Lavers, president and CEO of the Middlebury, Ind.-based builder, noted that “tremendous strides in cost reductions” on the RV side helped mitigate significantly lower sales due to adverse economic conditions.
“Our loss of $3 million for the quarter is obviously not what we strove to achieve, but it does represent an improvement in bottom line performance of $7.2 million or 71% from 2007 in the face of a 35% decrease in net sales,” said Lavers. “Through the first half, we have reduced our loss to $1.6 million from $21.5 million in 2007, an improvement of 93%, which is commendable given what is happening in both the housing and RV markets. Our operating expenses are tracking at less than 55% of last year’s level. These results demonstrate that the actions we have taken are working, and will allow us to weather this down cycle. Nevertheless, we must – and will – take even further measures to bring our costs in line with the revenues that are the reality of these market conditions.”
Sales for the second quarter were $96.7 million compared to $149.8 million in the year ago period while the company reported a net loss of $3 million versus a net loss of $10.1 million.
For the six months, sales fell to $218 million from $280 million a year ago while the net loss for the period totaled $1.6 million compared with $20.6 million.
The company’s RV Group showed second-quarter sales of $58.8 million compared with $111.2 million the year prior and the net loss for the division was $6.9 million versus $12.3 million.
“While we turned in a loss for the quarter, we have made significant progress in reducing our break even through cost reductions, capacity utilization, consolidation, and radically improved products – both appeal and quality,” said Michael Terlep, president of the RV Group. “However it simply is not enough in light of the current and projected market conditions and economic climate. And while a quarter-over-quarter improvement in bottom line performance for the RV Group of 44.0% on 47.2% fewer sales conclusively demonstrates the improvements we have made, we simply must make further adjustments throughout our company to navigate the worst market conditions our Industry has seen in decades.”