Significantly improved RV sales helped Coachmen Industries Inc. return to profitability during the second quarter, and Claire Skinner, the company’s chairman, president and CEO, believes Coachmen is “on track to report a solid profit for the full year.”
Coachmen’s RV sales revenue climbed 19% higher during the April-through-June period to $111.4 million, while its modular housing and buildings sales slipped 10% lower to $61.3 million.
The New York Stock Exchange-listed company’s RV business also posted an operating profit of $1.1 million during the second quarter, a sharp turnaround from the $2 million operating loss it incurred a year earlier.
Despite lower sales revenue, Coachmen’s modular housing and buildings business reported an operating profit of $4 million for the April-through-June period, which was 31% below the $5.7 million it earned from operations a year earlier.
The during the first half of this year, Coachmen’s RV sales revenue increased 10% to $220.9 million and its RV sector posted an operating profit of $537,000. During the first half of 2001, Coachmen’s RV business compiled an operating loss of $7.5 million.
Meanwhile, Coachmen’s modular housing and buildings business earned $3.5 million from operations during the first half of this year, a 44% decline from a year earlier, and its sales revenue was 8% lower at $106.3 million.
Skinner believes “the trends in our two business groups are becoming increasingly positive” because of improving demand for modular homes.
Concerning RVs, Coachmen’s daily production of all of its brands, in terms of units, was up 21% during the second quarter, when compared with the April-through-June portion of 2001. Coachmen RV output in June was up 71% when compared with the same month a year earlier, Skinner said.
“Coachmen began shipping Class A and Class C products from its recently reopened motorhome facility (in Middlebury, Ind.) in June, and plans to continue to increase production at all of its Coachmen plants during the third quarter,” Skinner continued. “Dealer response to Coachmen’s 2003 product line has been overwhelmingly positive. The company held its annual dealer seminar last week in Orlando showcasing its 2003 product line, which resulted in a substantial number of new orders from dealers.”
The improved operating performance of its RV sector resulted in Coachmen’s second quarter net income increasing 150% to $3.6 million and its net earnings during the first half of this year amounted to almost $3 million, compared with a $3.5 million net loss during the firs six months of 2001.