Coachmen Industries Inc. reported a decline in sales during its first quarter – including a 22% drop in recreational vehicle revenues – while showing a profit due, in part, to the sale of assets in the company’s Housing and Building Group.
Sales for the first quarter, ended March 31, fell 15.4% to $162.6 million from $192.2 million during the same period last year. Net earnings for the quarter were $2.9 million compared to a loss of $1.4 million in the first quarter of 2005.
The Elkhart, Ind.-based manufacturer of RVs and systems-built housing reported that income from continuing operations was $400,000 in the first quarter of 2006 compared with a loss of $1 million a year ago. During the three-month period, Coachmen completed a number of actions as part of its Intensive Recovery Plan, resulting in income from discontinued operations of $2.5 million versus a loss from discontinued operations of $400,000 last year.
The company’s RV Group reported first-quarter sales of $119.9 million, down 22% from the $153.7 million reported a year ago, primarily due to the softness in the motorized market.
The company said despite consumer confidence trending higher, recent increases in energy prices and projections for much higher fuel prices this summer may negatively impact consumer demand for RVs.
Claire C. Skinner, chairman and CEO, noted that “given recent market dynamics, it is possible that our RV Group will continue to struggle through the year.”
RV Group wholesale unit shipments of all product types increased by 0.4% to 4,808 units in the quarter as shipments of non-motorized products increased by 17.5% to 3,718 units while deliveries of motorized products fell 32.9% to 1,090 units.
Travel trailer shipments increased 38% due to the market success of its redesigned 2006 models, as well as orders for temporary housing units in hurricane affected areas in the Gulf Coast region, the company stated. The company delivered 1,100 FEMA-related units in the first quarter.