Featherlite Inc. yesterday today reported net sales for the second quarter ended June of $66.5 million, up 18.8% from net sales of $56.0 million last year. Net income for the quarter was $1,136,000 vs. net income of $1,011,000 last year.
Income from operations in the second quarter was $2,833,000 or 4.3% of net sales, up 19.5% from $2,371,000, or 4.2% of net sales in 1999. Gross margin was 14.6% in the quarter compared to 14.1% last year, reflecting an increase in gross margin in Featherlite’s specialty trailer segment and a decline in luxury motorcoach gross margin.
Featherlite Chairman Conrad Clement commented, “In our motorcoach segment, we continue to work toward improving production efficiency and controlling costs. In the first half of 2000 we launched our new Featherlite XLII luxury motorcoach and will introduce a slide-out version of this new model in the second half of the year. We are also on track toward introducing the new Featherlite Vogue(TM) 6000 motorcoach in the second half of the year.
“In support of our focus on direct sales of Featherlite luxury motorcoaches, we plan to open a new Featherlite Luxury Coach Division Sales and Service Center at the end of this year. This new sales and service facility will be in Statesville, N.C., strategically located between Charlotte and Winston-Salem, and will further increase Featherlite’s brand visibility, direct sales and the proximity of our motorcoach service capabilities to our many customers in this growing region.”
Featherlite’s first Luxury Coach Division Sales and Service Center, which opened in late 1999, is located in Sanford, Fla. Featherlite also said that it has discontinued its motorcoach dealer relationship with Oregon-based Destinations RV, Inc.