Spartan Motors Inc. today (Oct. 27) reported a 43% increase in net income for the company’s third quarter, ended Sept. 30, despite a 22% decline in sales of recreational vehicle chassis.
The Charlotte, Mich.-based manufacturer of custom motorhome chassis, fire truck chassis and emergency rescue vehicles reported net income of $2.7 million compared with $1.9 million a year ago, representing the company’s fourth consecutive quarter of improved earnings. Sales during the thee-month period fell to $89.3 million from $91.7 million.
For the nine months, net income grew 33.2% to $7.3 million compared with $5.5 million the previous year while revenues rose 15.3% to a record $267.6 million from $232 million.
Net earnings for subsidiary Spartan Chassis improved 39.2% in the quarter compared to the previous year, while revenues declined by 4.5%, primarily due to a 22% drop in sales of RV chassis.
“We continue to have an excellent year at Spartan Chassis,” said Sztykiel. “Based on current order activity, we continue to expect our best-ever year of fire truck chassis sales. At the same time, we posted another solid quarter of RV chassis sales, expanding our market share despite the overall downturn in the RV market, putting us in a great position as positive demographic changes continue to expand the RV market over the long term.
“Looking ahead, we are excited about the upcoming RVIA show in December, where we will display several new products. We are also on track to build more RV chassis in 2005 than 2004, and anticipate exceeding this number in 2006.”