National RV Holdings Inc. announced today that its second quarter sales and earnings will be below expectations due to slow retail sales of its units.
The number of units National RV shipped to dealers during April and May of this year was 30% below the amount it shipped during the same two months in 1999, the Perris, Calif.-based company reported.
National RV has launched “an aggressive sales promotion program” to help its dealers sell model year 2000 single-slide units and others with slow-selling floorplans, said Wayne Mertes, president and CEO.
The company hopes the promotions will allow its dealers to make room for model year 2001 units, which National RV will begin shipping in late June, Mertes said.
Also, to reduce operating expenses, National RV laid-off 350 employees, or 16% of its labor force.
Despite the difficulties, National RV will be profitable during the three-month period that will end June 30, Mertes added.