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Coachmen Returns to Profitability

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July 29, 2003 by   Leave a Comment

Coachmen Industries Inc., including its RV operations, returned to profitability in the second quarter, the New York Stock Exchange-listed company reports.
The modular structures and RV builder posted net earnings of $2.8 million during the three months ended June 30, offsetting its first-quarter loss. As a result, Coachmen was in the black $16,000 after the first six months of this year.
In comparison, Coachmen earned $3.6 million during the second quarter and $3 million during the first half of 2002.
Coachmen’s total sales increased 2% in the second quarter to $173.9 million, although its sales were down 1% after the first half of this year to $320.3 million.
The company’s RV-related pre-tax operating earnings totaled $919,000 during the April-through-June period, although its RV business remained $602,000 in the red after the first half of the year.
During the second quarter of 2002, Coachmen’s pre-tax RV operating earnings amounted to $1.1 million and its RV business was $537,000 in the black during the first half of last year.
“Sales and profits in our RV segment were negatively impacted by shortages and other operating inefficiencies attributable to the model changeover process at the end of the (second) quarter,” said Claire Skinner, chairwoman, president and CEO. “Most all of these issues have now been resolved, which should be reflected in the RV segment’s third-quarter results.”
Coachmen‘s Georgie Boy Class A motorhome manufacturing subsidiary will increase production rates in August because of the volume of orders received during its first-ever national dealer meeting in Tucson, Ariz., in June, Skinner said.
Additionally, the company’s subsidiary, Coachmen RV Co., CRV, received nearly $100 million worth of orders during its national dealer meeting in Dallas two weeks ago. CRV’s order volume in Dallas was 22% higher than during its dealer meeting in 2002, Skinner said.
“We believe that the improving trends in both our recreational vehicle and modular housing and building segments are indicative of even more positive results going forward, especially because of the strong acceptance of our products,” Skinner said. “Despite our first-quarter loss, if our business trends continue to improve, we believe we can achieve operating income comparable to 2002.”

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