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skyline_logoElkhart, Ind.-based Skyline Corp., a builder of manufactured home and park models, posted a 9.4% increase in fiscal second-quarter sales while incurring a net loss from continuing operations of $595,000.

The company noted that income for the three months was impacted by startup costs for a new facility coupled with a $250,000 payment on an account that had previously been fully reserved.

Sales during the period totaled $64.2 million compared with $58.7 million a year ago while diluted earnings per share were 7 cents compared with 20 cents.

For the six months, sales gained 16.7% to $125.4 million compared to $107,426,000 from continuing operations in the year-ago first half. Income from continuing operations was $149,000 as compared to income of $853,000 from continuing operations in the first six months of fiscal 2016.

Skyline reported the opening of a new facility in June of 2016 contributed $4.16 million in sales and incurred $4.7 million of expenses in the current quarter.

“Our second quarter and year to date results were negatively impacted by higher than expected startup costs and general inefficiencies in our new facility. We also experienced higher labor costs associated with hiring and training employees to meet the demands of increased production in a number of our facilities,” commented President and Chief Executive Officer Richard Florea. “We are redoubling our efforts to bolster our cost control environment to ensure that our labor and material costs meet our expectations despite these challenges.”

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