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Motorhome manufacturer Rexhall Industries Inc. reported losses for the fourth quarter and full year 2001.
The Lancaster, Calif.-based company lost $1.6 million net during the three months ended Dec. 31, compared with a $451,000 net profit earned a year earlier.
Rexhall lost a total of $2 million net during the full year 2001, compared with a $2.3 million net profit earned during 2000.
The company’s sales revenue fell 35% in the fourth quarter to $12.3 million and its full year 2001 sales were down 15% to $56.7 million.
The soft motorhome market, which did not end until the middle of the fourth quarter of last year, “led to decreased production levels (industrywide) and unprecedented levels of discounting and sales incentives” which contributed to Rexhall’s losses, said Bill Rex, president and CEO.
The Sept. 11 terrorist attacks also made Rexhall “focus on generating cash by reducing expenses and cleaning up our balance sheet,” Rex said.
However, Rex said the motorhome market improved as the fourth quarter drew to a close and the improvement continued this year. “Our year-end order backlog was over $15 million, up from around $6 million a year earlier, and it’s higher today,” he said.
“Our daily production level in 2002 is higher than a year ago, and we’re planning to go higher once our chassis suppliers catch up to us,” Rex added.
Even though Rexhall’s sales revenue declined sharply during the fourth quarter of last year, Rex said, “We didn’t stop making operational improvements or R&D expenditures which should make for a successful 2002 and beyond.”