Goshen, Ind.-based Supreme Industries Inc., a manufacturer of specialized commercial vehicles including truck bodies and specialty vehicles, announced financial results for its fourth quarter, ended Dec. 28.
Consolidated net sales for the fourth quarter increased 25.6%, to $72.5 million, compared with $57.7 million last year. The company said revenue increase was attributable to a fall fleet build and improved retail demand for truck bodies, partially offset by lower sales volume in the specialty vehicle and bus divisions. Net income for the fourth quarter was $1.7 million, or 10 cents per diluted share, up from net income of $0.4 million, or 2 cents per diluted share, last year.
Sales for the full year decreased 1.4% to $282.3 million from $286.1 million last year, due to lower bus and specialty vehicle sales offset by increased truck body volume. Net income for the twelve months was $6.4 million, or 39 cents per diluted share, compared with $11.8 million, or 73 cents per diluted share the previous year.
During the quarter, the company announced its intention to divest the highly competitive shuttle bus business. The increasingly competitive environment in the bus industry has led to higher discounting making it more difficult to meet Supreme’s profitability objectives. While shuttle bus products represented less than 13% of the company’s consolidated 2013 sales, the business generated unacceptable margins in 2013.
“The decision to divest the shuttle bus business is expected to help us maximize shareholder value by optimally allocating resources where they will earn the highest return. Supreme’s core business of manufacturing and selling customized truck bodies has recently undergone successful facilities and manufacturing process upgrades, resulting in better operating efficiencies and expanding margins for these products,” said President and CEO Mark Weber.