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Coachmen Industries Inc.’s second-quarter net earnings improved by 82% primarily because of the strength of its RV business, the New York Stock Exchange-listed company reported Monday (July 26).
Coachmen earned $5.2 million during the three months ended June 30, compared with $2.8 million earned during the April-through-June portion of 2003.
Meanwhile, the RV and modular housing-commercial structures producer’s total sales increased 35% during the second quarter to $234.9 million while its RV sales expanded by 44% to $166.4 million.
Additionally, Coachmen’s RV segment experienced more than a fivefold increase in pretax profits during the second quarter to $4.6 million, compared with $919,000 earned a year earlier. In comparison, Coachmen’s modular housing-commercial buildings segment experienced a 12% decline in pretax earnings during the second quarter to $3.3 million, compared with $3.8 million earned a year earlier.
In terms of unit volume, Coachmen’s total RV shipments increased 15% in the second quarter, including a 52% increase in Class A motorhome deliveries and a 71% increase in Class C motorhomes. Within the Class A motorhome segment, shipments of Coachmen’s diesel-engine models were up 42% during the second quarter compared to last year.
In towable RVs, Coachmen’s total shipments increased 2% in the second quarter. Shipments of its fifth-wheels increased 28% and deliveries of Coachmen-built folding campers improved by 9%. However, its travel-trailer shipments declined 9% during the April-through-June period.
During the first half of this year, Coachmen’s net earnings totaled $5.8 million, compared with $16,000 earned during the first half of 2003. The company’s total sales increased 36% during the first six months of this year to $436.1 million.
Coachmen’s RV sales improved by 44% during the first half of this year to $320.5 million. The company’s RV-related pretax earnings totaled $7.1 million during the first half of this year, compared with a pretax loss of $602,000 incurred during the same portion of 2003. Coachmen’s modular-home and commercial-buildings segment had flat pretax earnings of $1.7 million during the first half of this year, the same amount as last year.
Looking ahead, Coachmen announced Monday that its RV Group will open a service center in Southern California during the third quarter “to enhance customer satisfaction” and to help Coachmen expand its distribution base in the western states.
Coachmen also completed on July 6 the acquisition of a second factory building north of Middlebury, Ind., where the firm will build its new series of Coleman by Coachmen products. Coachmen will complete designs, reconfigure the plant and hire workers during the remainder of this summer in order to launch the first Coleman by Coachmen products this fall, according to Coachmen President and COO Matt Schafer.
The West Coast service center opening and work related to the development of the Coleman by Coachmen product series will create start-up costs for Coachmen, Despite the additional expenses, Claire Skinner, Coachmen’s chairman and CEO, believes Coachmen will earn from $13.8 million to $14.6 million (or 88 cents to 93 cents per share) for all of 2004, compared with $7.4 million (or 48 cents per share) in 2003.