High-line Class A motorhome manufacturer SMC Corp. returned to profitability during the final three months of 2000, the company reported.
SMC earned $134,000 during the October-through-December period after posting losses the previous three quarters.
However, for the full year 2000, SMC lost a total of $5.4 million.
During the fourth quarter of 1999, SMC earned $152,000 and it earned $241,000 during all of 1999.
The company’s fourth quarter sales totaled $42.7 million, down 27% from the fourth quarter of 1999. During the full year 2000, SMC’s sales totaled $190.7 million, down 12% when compared with 1999.
Although SMC lost $5.4 million in 2000, it generated $13.8 million in cash as a result of reducing inventories and receivables. Reducing inventory was particularly beneficial during the current RV market downturn because it reduced the need for SMC to discount the prices of its products, according to the company.