Kevco Inc., a distributor of building products to the producers of manufactured homes and RVs, reported its third quarter losses narrowed despite a 34% decline in sales revenue.

The company lost $9.3 million during the three months ended Sept. 30, compared with a loss of $26.0 million a year earlier.

Kevco’s third quarter sales totaled $137.0 million, compared with $208.9 million a year earlier.

During the nine months ended Sept. 30, Kevco lost $16.1 million, compared with a loss of $27.9 million incurred during the same period a year earlier.

The company’s sales declined 29% during the nine-month period to $470.7 million.

Kevco Chairman Fred Hegi blamed the manufactured housing industry’s sharp downturn for the company’s losses. He said more than one-fifth of all manufactured housing plants have been closed and more closures are likely, because of a 20% decline in retail demand, excess dealer inventories and repossessed units have glutted the market.

However, Kevco has not engaged in any borrowing since September 1999 so the company has had positive cash flow this year, according to Hegi.