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Skyline Corp. reported its travel trailer, fifth-wheel and park model businesses generated a pre-tax operating loss of $195,000 for the second quarter of its fiscal year 2003, which ended on Nov. 30, the Elkhart, Ind.-based firm reported in a Securities & Exchange Commission (SEC) document.
Skyline RV’s loss during the September-through-November period compares with a pre-tax operating profit of $114,000 its RV business generated in the same period the year before.
The company’s RV sales revenue declined 12% for the three months ended Nov. 30 to $29.7 million, although Skyline’s total sales increased 2% in the period to $114.6 million. That was because its manufactured housing revenue increased 8% to $84.9 million.
Skyline’s wholesale shipments of travel trailers, fifth-wheels and park models declined 14% in the September-through-November period to 4,166 units in part because “consumer demand for towable metal-sided RVs shifted toward product with price points lower than those historically offered by the corporation,” according to Skyline’s SEC document.
Skyline executives said they “addressed this shift in demand” with the company’s new model year 2004 lineup, which had not yet reached the market in significant numbers as of Nov. 30.
Skyline added that “the market is dictating a higher-priced bonded fiberglass exterior” for towable RVs and “the corporation currently offers a limited number of models with this exterior.”
For the six months ended Nov. 30, Skyline’s RV business posted a pre-tax operating profit of $262,000, a 9% increase over the $241,000 it earned in the same period a year earlier.
However, Skyline’s RV sales revenue declined 12% in the six months ended Nov. 30 to $60.8 million, compared with $69.3 million a year earlier.
Skyline built 5,189 travel trailers during the first 10 months of calendar year 2003, compared with 6,045 during the same portion of calendar year 2002, the company reported. It also built 1,419 fifth-wheels during the first 10 months of 2003, compared with 1,649 units built a year earlier.
Skyline produced 404 park model units during the first 10 months of 2003, compared with 343 in the same portion of 2002.