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Coachmen Industries Inc. reported a “solid” financial performance during the third quarter, but Claire Skinner, the company’s chairman and CEO, said the firm now is experiencing “a marked slowdown in retail demand for RVs with a corresponding reduction in RV revenues and margins.
“We have responded by temporarily reducing production rates in some facilities,” Skinnner continued. “We are hopeful that the current trends in RVs will begin to improve late in the fourth quarter, as uncertainties surrounding the economy and elections subside and as markets in the Southeast recover (from hurricane damage).”
She added that “competitive measures may well place strong pressure on RV margins in response to excess inventories industrywide. Even so, we remain reasonably optimistic for the remainder of this year and 2005.”
Despite the challenges, Skinner continues to believe Coachmen’s total sales during the full-year 2004 will amount to $850 million to $890 million, a 20% to 25% increase over 2003, and that its net income should range from $13.6 million to $14.4 million, almost double the $7.4 million it earned during 2003.
During the third quarter, the RV and modular structures builder reported its total sales increased 17.3% to $235.5 million, and its net income improved by 10.6% to $5.9 million, compared with $5.4 million during the July-through-September portion of last year.
Coachmen’s third quarter RV sales increased 18.1% to $160.9 million compared with $136.2 million a year earlier, and its pre-tax RV-related operating income improved by 13.2% to $3.3 million compared with $2.9 million last year.
In terms of unit volume, Coachmen’s total RV shipments increased 3.4% during the third quarter with its Class A motorhome shipments growing by 14.1% and its Class C shipments climbing 35.6%. The company’s diesel engine Class A motorhome shipments also increased 27.5% during the July-through-September period.
However, Coachmen’s towable RV deliveries declined by 3.4% during the third quarter as its fifth-wheel shipments plunged 31.1%. Coachmen’s travel trailer shipments increased 1.4% and its folding camper deliveries were up 4.9% during the three months ended Sept. 30.
During the first nine months of this year, Coachmen’s total sales increased 28.9% to $671.7 million and its net income more than doubled to $11.8 million, compared with $5.4 million during the same portion of 2003.
The New York Stock Exchange-listed company’s RV-related sales revenue increased 34% during the first nine months of this year to $481.3 million and its pre-tax RV-related operating earnings increased almost fivefold to $10.4 million, compared with $2.3 million a year earlier.
In terms of unit volume, Coachmen’s total RV shipments increased 11.6% during the first nine months of this year, including a 40.9% increase in motorhome shipments. The company’s Class A shipments rose 34.6% and its Class C deliveries were up 49.4%.
Coachmen’s folding camper shipments also increased 10% during the first nine months of this year, although its travel trailer shipments declined 2.4% and its fifth-wheel deliveries were down 3.8% during the period.