Cost of Materials Cuts into Skyline’s Profits
Elkhart, Ind.-based RV and manufactured housing builder Skyline Corp. reported higher sales for the quarter and six-month period, ending Nov. 30, but increases in materials costs decreased the company’s profits.
Revenues for Skyline’s fiscal 2005 second quarter were $120.6 million compared with $114.6 million during the same period last year. For the first six months of fiscal 2005, sales were $237.7 million versus $224.3 million for fiscal 2004.
Skyline’s RV Group sales were down slightly for the quarter to $28.8 million compared with $29.7 million last year. For the six months, the RV Group reported revenues of $61.2 million versus $60.8 million for the same period a year ago.
Skyline’s net earnings for the second quarter were $1.9 million compared with $2.1 million the year before. For the first half of fiscal 2005, net earnings were $2.7 million compared with $4.1 million a year ago.
“While Skyline offsets rising costs by increasing its selling prices, sudden major increases in costs, coupled with dealers’ retail sales commitments, can affect the timing of when Skyline can pass on its cost increases,” according to a statement released by the company.