National RV Holdings Inc. plans to increase Class A motorhome output from its Perris, Calif., factory by 20% by year’s end, and that increase would come on top of a 25% increase in the third quarter, President and CEO Brad Albrechtsen said during a conference call with investment analysts last week.
To build the additional units, National RV hired 38 more workers in Perris in the third quarter and it anticipates adding another 30 people as it goes forward, said Carol Taylor Clay, company spokeswoman.
The additional workers would raise National RV’s employment level in Perris to more than 1,100 people, she added.
Workers at National RV’s factory in Perris are building 40 Class A’s a week, or between 1,800 to 2,000 a year, Albrechtsen said.
The company’s plant in Perris has three production lines, one for building Class A’s, one for towable RVs and the third is idle. Consequently, the Perris factory currently is operating at about 50% capacity, Albrechtsen said.
Although the company anticipates increasing Class A production in Perris an additional 20% during the fourth quarter, Albrechtsen said it will not repeat the mistake of building excess inventory. Instead, National RV intends to continue producing at a rate that “is slightly behind the retail (sales) rate,” he added.
Meanwhile, National RV’s Country Coach highline Class A motorhome assembly facility in Oregon is producing at a rate of about 500 units per year, which is about 80% of its factory capacity, Albrechtsen said.
National RV, a New York Stock Exchange-listed company, reported another net loss in the third quarter, but Albrechtsen reported last week that the worst may be over for the company.
The company reported a $300,000 net loss for the July-through-September period and Albrechtsen anticipates a similar result in the fourth quarter. However, he believes the company will return to profitability during the first quarter of next year, although he did not forecast the amount.
Investors now have a more optimistic view of National RV’s future, as indicated by the fact they recently bid up the company’s stock price to the $11-a-share range, the highest it has been in more than a year.