Spartan Motors Inc. today (April 27) reported its best-ever quarterly results, highlighted by a 119% increase in net earnings on a 16.6% increase in net sales for its first quarter ended March 31.
The Charlotte, Mich.-based company, which builds custom motorhome chassis, fire truck chassis and emergency-rescue vehicles, reported net income of $4.5 million compared with $2 million a year ago while sales increased to $103.7 million from $88.9 million.
Spartan attributed its fifth consecutive quarter of increased earnings to improved product mix, labor efficiencies and leverage of the overhead due to higher volume.
Spartan reported an increase in sales of fire truck chassis, fire trucks and ambulances compared to the first quarter of 2005, while RV revenues in the firm’s Spartan Chassis division dipped, weighed down by continued weakness in the motorhome market.
“Our motorhome chassis sales decreased in the quarter by only 9.8% compared to the prior year, while the Class A motorhome market as a whole decreased 20%, though our sales improved compared to the fourth quarter of 2005,” said John Sztykiel, president and CEO of Spartan Motors. “We are gaining market share for both our motorhome and fire truck chassis business, and we are also optimistic that the RV market is on the road to recovery.”