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Coachmen Industries Inc. reports its RV operations earned $2.6 million before taxes in the third quarter and its RV sales revenue climbed 46% higher for the period, which ended Sept. 30.
The New York Stock Exchange-listed company’s RV-related pre-tax profit of $2.6 million more than offset the $1.6 million pre-tax loss its RV operations incurred in the July-through-September portion of 2001.
During the first nine months of this year, Coachmen’s RV business earned a total of $3.1 million pre-tax, compared with a $9 million pre-tax loss incurred a year earlier.
Coachmen’s motorhome and towable RV sales revenue amounted to $114.6 million in the July-through-September period, a 46% increase over its $78.5 million in RV sales revenue in the same portion of last year.
In the first nine months of this year, Coachmen’s RV sales revenue climbed 20% higher to $335.5 million.
The return to profitability of Coachmen’s RV segment was the result of “improving industry trends as well as by increased dealer and consumer acceptance as a result of extensive redesign and brand strategy changes made during 2001,” said Claire Skinner, chairman, president and CEO.
“Compared to the third quarter of 2001, Coachmen’s unit production rate was up 47%,” Skinner added. “The company was able to make reasonable progress in reducing its extremely high backlogs by increasing production rates during the quarter.”
Unlike many of its competitors, Coachmen does not reveal the number of motorhomes or towable RVs that it ships during a quarter, although Skinner said the total number of Coachmen units delivered to its dealers was up 22.5% in the first eight months of this year, while shipments industrywide were up 17% in the same period.
Coachmen also is a significant producer of modular homes and modular structures, although its modular structures sales revenue declined 9% during the third quarter, to $64.6 million, because of soft demand for telecommunications structures.
However, Coachmen’s modular structures business remained profitable, earning $3.6 million pre-tax in the third quarter and $7 million in the first nine months of this year.
In all, Coachmen posted net earnings of $4.3 million in the third quarter, compared with a $1 million net profit earned in the July-through-September portion of 2001, and it earned $7.3 million in the first nine months of this year, compared with a $2.5 million net loss incurred in the same portion of 2001.
For all of 2002, Skinner believes, Coachmen Industries will earn around 75 cents per share of common stock, or about $12.1 million.