Spartan Motors Inc. today (Feb. 14) announced operating results for the fourth quarter and full year 2011.
Revenues for the fourth quarter of 2011 were $111.2 million, down 12% from the fourth quarter of 2010. Most of the decline in sales compared to the fourth quarter of 2010 was due to a non-recurring order for defense parts in the prior year. Revenue in the fourth quarter of 2011 was also negatively impacted by delayed shipments of the Reach commercial van and some walk-in vans. Net income for the fourth quarter of 2011 was $0.7 million, or $0.02 per diluted share, compared to net income of $3.4 million, or $0.10 per diluted share.
Revenue for the full year totaled $426.0 million versus $480.7 million in 2010, a decline of 11.4%. Declines in defense-related chassis and service parts sales, along with general softness in most other business units accounted for lower revenue compared to 2010. Partially offsetting weaker segments was the Delivery and Service business, which posted a sales gain of 46.5%t for the year.
Gross profit for the year totaled $60.6 million, or 14.2% of sales, for 2011. For 2010, gross profit totaled $72.5 million, or 15.1% of sales. Lower gross profit in 2011 was due to lower total revenue as well as the lack of higher-margin defense parts sales and a less profitable product mix in the Emergency Response Bodies business.
“As we focus on 2012, we will continue to execute our plan, a blended strategy of acquisitions, alliances, organic growth and systematically reducing our operating costs,” said John Sztykiel, President and CEO of Spartan Motors. “Our total order backlog increased nearly 2% over the fourth quarter of 2010, with Utilimaster more than doubling its backlog compared to last year. We reduced the lead time to produce an Emergency Response chassis from seven months to four, significantly shortening our cash conversion cycle. We accomplished all of this despite operating in challenging markets. We are dedicated to capitalizing on the progress we have made and expect to deliver sustained revenue and profit growth in 2012 and beyond.”
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