Elkhart, Ind.-based Skyline Corp., a builder of manufactured housing and park model RVs, incurred a net loss during its fiscal third quarter, ended Feb. 28, while reporting an 8.3% increase in revenue.

Sales from continuing operations totaled $51.6 million compared with $47.7 million $697,000 in the year ago quarter. In June 2016, Skyline commenced operation of a leased facility in Elkhart, Ind., which contributed $4.3 million in net sales and incurred a loss of $323,000 in the current quarter.

Net loss during the period was $2.4 million, or 29 cents per share, as compared to a net loss of $520,000, or 6 cents per share, in the third quarter of fiscal 2016.

Operating results were adversely affected by increased manufacturing labor costs associated with hiring and training employees at facilities which are increasing production output. In addition, newly-hired, inexperienced employees contributed to an increase in higher workers’ compensation and warranty costs for the period.

“While we are disappointed with our performance in the third quarter, our recent decision to close two underperforming plants will eliminate the persistent losses that they have incurred,” said Richard W. Florea, president and chief executive officer. “The closure of these facilities will permit us to reallocate resources to focus on improving the profitability of our remaining plants.”

For the first nine months, sales from continuing operations gained 14.1% to $177 million from $155.1 million in the year ago quarter. Sales attributable to the Elkhart facility during this period were $10.55 million while losses totaled $1.6 million.

Skyline reported a net loss of $2.3 million, or 27 cents per share, as compared to a net income of $352,000, or 4 cents per share, a year ago.