Spartan Reports Record Quarter Sales, Earnings
Despite continued softening in its RV chassis segment, Spartan Motors Inc. today (July 26) reported its best-ever second quarter results — marked by a 39.7% increase in net sales and a 30.5% increase in net earnings for the quarter ended June 30.
The Charlotte, Mich.-based manufacturer of custom vehicle chassis and emergency- rescue vehicles reported net earnings of $6.5 million on net sales of $152.6 million in the second quarter, compared with net earnings of $5 million on net sales of $109.2 million in the second quarter of 2006. All financial information includes adjustments for the company’s 3-for-2 stock splits in June 2007 and December 2006.
“This was another quarter in the right direction, highlighted by year-over-year improvements in sales, earnings, return on invested capital and backlog,” said John Sztykiel, president and CEO of Spartan Motors. “We posted sales gains in every product group at Spartan Chassis, including ramping up production to meet current and future orders related to the military’s Mine Resistant Ambush Protected (MRAP) vehicle program, and grew sales with our recreational vehicle and emergency-rescue products, despite stiff market and economic headwinds.”
Through the first six months of 2007, Spartan’s sales increased 38.8% compared with the same period of last year, while earnings increased 44.8%.
“We remain on track for the best year in company history and see additional growth potential in the second half of 2007,” Sztykiel said.
Sales at Spartan Chassis, the company’s largest operating unit, increased 43.4% to $137.4 million, or 90% of Spartan Motors’ total sales. Earnings at Spartan Chassis improved 25.5% in the current second quarter compared to the same quarter of last year, and the unit’s backlog as of June 30 increased 31.1% year-over-year.
Spartan’s RV chassis sales increased 2% in the second quarter, driven in part by a year-to-date 5% increase in industry wholesale shipments for Class A motorhomes as of May 2007, the latest industry data available from the Recreational Vehicle Industry Association (RVIA). Backlog for RV chassis decreased 18.4% year-over-year as of June 30, reflecting waning consumer confidence and slower retail traffic at RV dealers.
“Spartan Chassis as a whole continues to drive the business, and while the going is tough, we are optimistic that we can work to gain business in a difficult RV climate,” said Sztykiel.