Featherlite Reports 2Q Sales, Earnings Decline
Cresco, Iowa-based Featherlite Inc., a leading manufacturer and marketer of specialty aluminum trailers, transporters and luxury motorcoaches, this week (July 26) reported net income of $1.1 million for its second quarter, ended June 30.
This, according to the company’s release, compares with net income of $1.5 million for the same period in 2004. The decrease in net income was primarily the result of lower gross profit in both the trailer and motorcoach segments, which was partially offset by reductions in selling and administrative expenses, the company reported.
“While the trailer segment maintained unit sales volume for the quarter,” the release stated, “its net income was negatively impacted by greater than anticipated aluminum and other cost increases not sufficiently compensated for by production efficiencies or product price increases. Motorcoach segment net income declined as a result of reduced new and used motorcoach unit sales volume.”
Net income for the first six months of 2005 was $2.5 million compared with $2.7 million for the same period in 2004. On a diluted per share basis, the company earned 22 cents in the first six months of fiscal 2005 vs.24 cents for the same period in 2004.
Net sales for the second quarter ended June 30 totalled $52 million, a decline of 10.6% over the $58.2 million reported in the same period last year. Net sales of $110.5 million for the first six months of 2005 were off 3.6% from $114.6 million posted a year earlier.
“After posting six consecutive quarters of earnings gains over comparable quarters in the prior year,” Conrad Clement, Featherlite’s president and CEO, said in the publicly held company’s corporate release, “we were disappointed that the second quarter of 2005 did not meet expectations. However, we remain cautiously optimistic about the level of sales for the remaining quarters of 2005.
“We are encouraged by an increase in the motorcoach backlog to $9.2 million at June 30, 2005, compared to $5.4 million at June 30, 2004. Trailer backlog has decreased to $16.3 million compared to $21.7 million last year, but order levels have remained strong and have been filled from increased finished goods inventory. We anticipate an enthusiastic reception to the new and enhanced 2006 models now arriving at our trailer dealers and coach showrooms. Featherlite continues to introduce exciting product innovations that can capitalize on the industry’s growing leisure and recreation segment, a prime target market for the company.”