Towable RV and manufactured home producer Kit Manufacturing Co. reports it lost $643,000 during the second quarter of its fiscal year 2001, which ended April 30.
The loss during the February-through-April period compares with a profit of $865,000 Kit earned during the same period a year earlier. However, Kit’s earnings during the second quarter of its fiscal year 2000 occurred largely as a result of a one-time-only gain of $853,000 from the sale of property in Chino, Calif.
During the six months ended April 30, Kit lost a total of $1.5 million, compared with a $1 million profit earned a year earlier.
Kit’s sales during its second fiscal quarter declined 18% to $12.2 million and its sales during the first half of its fiscal year 2001 were down 27% to $18.9 million.
The losses and sales revenue declines occurred because of the slowdown in sales of RVs and manufactured homes due to the cooling off of the nation’s economy, said Dan Pocapalia, Kit’s chairman and CEO. Declining consumer confidence, excess dealer inventories of manufactured homes and RVs, higher fuel costs and tightened credit policies also contributed.
Kit’s RV division will respond with marketing efforts “aimed at meeting demand in the upper end of the market as well as developing and introducing new product lines,” Pocapalia said.
Kit management believes the company will report “improved results” for the May-through-July quarter, he added.