Coachmen Industries Inc. Wednesday (July 29) announced its financial results for the second quarter ended June 30.
Net sales from continuing operations for the second quarter were $17.7 million, compared to $11.3 million for the first quarter of 2009. Gross profits for the quarter were $853,000 or 4.8% of revenue, as compared to a loss of $2.1 million or 18.4% of revenue in the first quarter of 2009, according to a news release.
The Elkhart, Ind.-based producer of manufactured housing and specialty vehicles reported a net loss from continuing operations of $2.8 million, versus a net loss from continuing operations of $6.1 million in the first quarter of 2009. Net loss, including discontinued operations, was $3.2 million, versus a net loss of $6.4 million in the first quarter of 2009.
“Overall, sales are less than one-half what they were in 2008 as we continue to remain mired in the worst housing market in the last hundred years,” said Richard M. Lavers, president and CEO. “However, our business is beginning to show significant improvement. We have shaved our losses to one-third of what they were in the first quarter. We have experienced three months of modest but sequential revenue improvement, and both segments of our business posted modest profits in June. This is directly attributable to success in obtaining major project business, increased bus sales, and the steps taken to reduce our operating costs. We were essentially cash-neutral from operating activities in the second quarter.
“Tail liabilities from the sale of the RV business last December continue to decline and appear to be on track with projections. We are now heading in the right direction despite general economic conditions.”
He added, “Sales of the Spirit of Mobility buses produced for our joint venture ARBOC Mobility are relatively modest, but each month we are continuing to increase the number of orders and shipments. The bankruptcy of General Motors has had a temporary impact on availability of vehicle chassis and consequently our ability to build and ship units, but that situation has resolved itself. We anticipate regular availability of chassis beginning in August. Accordingly, this segment of our business should be a profit contributor rather than a cash drain for the remainder of this year and beyond. This is particularly true given the increased government funding available through federal stimulus packages.”