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National RV Holdings Inc. remained profitable during the third quarter, although President and CEO Brad Albrechtsen said the company was facing “slowing consumer demand, particularly for gas-powered vehicles.
“As retail motorhome demand began to soften industrywide, partially driven by weakness in the Southeast market (because of the hurricanes), we adjusted our production levels to better reflect the softening sales trend for our midlevel motorhomes, in addition to offering promotional incentives to avoid a build-up of inventory,” Albrechtsen said.
Perris, Calif.-based National RV Holdings is parent to National RV Inc. and Junction City, Ore.-based Country Coach Inc.
National RV Holdings, which sold its money-losing towable RV assets to Weekend Warrior Trailers Inc. last month, earned a net income of $356,000 during the third quarter, which compares with a $687,000 net loss the company incurred in the same portion of 2003.
National RV’s towables business posted a net loss of $695,000 during the July-through-September period, compared with a net loss of $317,000 in the same period a year earlier.
National RV Holdings’ total sales increased 39% in the third quarter to $117.5 million, compared with $84.6 million a year earlier.
Sales for Country Coach, which builds diesel-engine Class A motorhomes, improved by 31% in the third quarter to $55.7 million and revenue increased 47% to $61.8 million.
During the first nine months of this year, National RV Holdings’ net income totaled $3.5 million, compared with a net loss of $8.8 million incurred during the same period a year earlier. Its towables operation posted a net loss of $1.1 million during the first nine months of this year, compared with a net loss of $774,000 a year earlier.
Country Coach’s sales revenue increased 73% during the first nine months to $159.6 million while sales for the National RV division improved by 41% to $181.4 million.
Country Coach increased its production rates during the third quarter “to address the broad-based consumer demand we have seen for its redesigned product lines,” Albrechtsen said. “In fact, Country Coach dealers remain on allocation for the division’s highline vehicles.”
The National RV division, located in Perris, Calif., also will introduce new versions of its Tradewinds and Islander diesel-pusher Class A’s during the industry’s National Trade Show in Louisville Nov. 30-Dec. 2.
The new diesel products, “combined with a continued focus on strengthening our dealer network will help us drive future growth,” Albrechtsen said.