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Spartan Motors Inc. reported lower profits and sales for its fourth quarter, including a 39% decline in revenue for its Spartan Chassis subsidiary.
However, the Charlotte, Mich.-based company did post gains for its full year attributed to higher sales in its service, parts and accessories business, productivity improvements and a change in product mix.
“During the year, we scaled our operations to match demand, controlled costs, invested resources into innovation and product development and ended the year on financially solid ground,” said John Sztykiel, president and CEO of Spartan Motors. “Our diversification across several sectors gives us numerous opportunities while minimizing risk.”
Spartan reported fourth quarter net income decreased 64% to $2.9 million compared to $8.2 million in the year-ago period while sales fell 38% to $146.3 million from $237.6 million. Performance reflected fines and penalties related to a government investigation into military contracts
For the year, Spartan’s net income rose 74.3% to $42.7 million while sales were up 23.8% to $844 million.
Spartan’s chassis sales to the Class A diesel motorhome market decreased 86.6% year-over-year in the fourth quarter, while backlog for RV chassis decreased 79.7% as of Dec. 31, 2008.
“Our focus in motorhomes this year is to position ourselves for the eventual industry recovery,” Sztykiel said. “We expect flat to lower sales in 2009 for motorhome chassis because of industry conditions. However, retail sales have severely depleted dealer inventory, giving us the potential for a significant rebound when the RV industry begins its eventual recovery.
“Though difficult to predict, we believe there will be a probable year-over-year decline in the second half for motorhome chassis sales. In the meantime, we are continuing new product development and engineering new innovations for motorhome chassis to gain market share and new OEM customers.”