National RV Holdings Inc. reported its third quarter earnings were down 70% due, in part, to its sales revenue being down 20% during the period.
The Perris, Calif.-based company earned $2.7 million during the three months ended Sept. 30 on sales of $86.7 million.
In addition to lower sales revenue, National blamed its lower earnings on “continued sales discounting and an increase in warranty expense.”
During the nine months ended Sept. 30, National’s earnings were down 58% to $10.4 million and its sales were down 16% to $266.4 million.
Wholesale shipments of National’s gas engine motorhomes was down 39% in the third quarter to 382 units, while diesel motorhome shipments were down a modest 3% to 356 units.
Because National delivered a higher proportion of higher priced diesel units, its total motorhome sales revenue was down 21%, despite a 26% decline in the number of units shipped.
Meanwhile, National’s towable RV shipments increased 68% in the third quarter to 129 units, due to the introduction of its first entry-level towable brand, the Splash, and higher fifth-wheel shipments.
National’s towable revenues were up 33% in the third quarter.
The company’s production rate now is 20% below what it was a year-ago and its dealer inventories are roughly at the same level that they were a year-ago. Consequently, National’s order backlog is beginning to build so it plans a modest increase in production during the fourth quarter.