DURA Automotive Systems Inc., parent of recreational vehicle industry suppliers Atwood Mobile Products and Creation Group, reported improved earnings in the company’s fourth quarter partially aided by the “strength of the RV industry.”
Revenues in the fourth quarter, ended Dec. 31, were $564.4 million compared to $582.8 million in the prior year and net income rose to $10.3 million from $1.9 million. During the third quarter, the Rochester Hills-based company incurred a $6.6 million loss.
For the full year, DURA reported sales of $2.3 billion compared to $2.5 billion in 2004 while net income dropped to $1.8 million from $11.7 million.
The company, which manufactures a variety of components and systems for the global automotive, RV and specialty vehicle industries, said improvement in raw material costs and the “favorable resolution of certain environmental matters” offset the impact of the lower domestic OEM automotive volumes in the fourth quarter.
The company’s RV operations benefited by a surge in industrywide towable sales during the quarter, boosted by orders for the Federal Emergency Management Agency (FEMA) for emergency housing in the Gulf Coast.
In its financial report, DURA also announced a “significant restructuring plan” to increase efficiencies. The company expects $100 million of cash costs to restructure by the end of 2007, with production movements or facility closings affecting more than half of its operations.