Spartan Reports Good Q2; Motorhome Outlook ‘Tough’
Spartan Motors Inc. today (July 23) reported strong second quarter operating results despite difficult macro-economic and market conditions, underscoring the long-term strength and success of the company’s agile and diverse business model, according to a press release.
Spartan’s second quarter performance was highlighted by increased sales of emergency rescue products, increased sales of service, parts and assemblies and improved gross margins compared to the same quarter of 2008.
For the quarter ended June 30, Spartan reported:
- Net sales of $124.3 million.
- Gross margin of 20.3% of sales.
- Return on invested capital of 12.1%.
- Consolidated backlog of $160.7 million.
“This was a good quarter, particularly in light of the short-term challenges facing our markets,” said John Sztykiel, president and CEO of Charlotte, Mich.-based Spartan Motors. “Likewise, we’re equally pleased with the consistent performance through the first six months of the year and believe our proven ability to flex the business and align costs with current business trends bode well for the future.”
Meanwhile, Spartan Chassis’ sales to the Class A diesel motorhome market declined 92.3% year-over-year in the quarter, while backlog for RV chassis decreased 46.2% year-over-year to $6.7 million as of June 30.
“The current outlook for motorhomes remains tough, though we have seen a slight increase in demand for motorhome chassis in recent months and have increased our production accordingly,” said Sztykiel. “Spartan continues to position itself for the eventual recovery in the RV industry through product development and innovations to gain market share. More than a half million people continue to enjoy their RVs each day, an indication of how ingrained the RV lifestyle has become in our culture.”