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Supreme Notes Motorhome Business Exit in Q4
Posted By RV Business On February 18, 2010 @ 9:51 am In Breaking News | No Comments
Supreme Industries Inc., a leading manufacturer of specialized commercial vehicles, including truck bodies, shuttle buses, armored vehicles and homeland response vehicles, announced Wednesday (Feb. 17) financial results for its fourth quarter and full year ended Dec. 26.
The Goshen, Ind.-based manufacturer said continued significant softness in demand for dry-freight trucks led to an 18% decline in fourth-quarter 2009 consolidated net sales to $46.0 million, from $56.0 million in the same period a year ago. For the full year, consolidated net sales declined 26% to $192.0 million, versus $257.9 million in 2008, according to a news release.
The reported net loss from continuing operations for the quarter was $3.0 million, versus a loss of $2.0 million in last year’s comparable quarter. For the full year, Supreme reported a net loss from continuing operations of $6.4 million, compared with the 2008 loss of $2.1 million, .
During the fourth quarter of 2009, the company exited its Silver Crown luxury motorhome business and has reclassified prior-period results accordingly as discontinued operations. The net loss from discontinued operations recorded during the fourth-quarter and full-year 2009 totaled $1.5 million and $2.2 million, respectively. The unprecedented tight credit markets caused by the severe economic recession led to a significant reduction of new motorhome orders and the cancellation of existing orders.
The company’s sales backlog increased during the final quarter of 2009, reaching its highest level in more than a year — up 13% to $68 million at Dec. 26, versus $60 million at the end of December 2008. The improved backlog was derived from increased demand for buses and armored vehicles, while the truck backlog decreased from the prior year and was quite low when compared with backlogs in more normal economic conditions. Although not reflected in Supreme’s year-end backlog, increased quoting activity in most of the company’s sales territories, as well as other signs of stabilization in the commercial truck market, have been noted.
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