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Spartan CEO Sztykiel Still Upbeat on RV Sector
Posted By RVBusiness On July 27, 2011 @ 10:45 am In Breaking News | No Comments
Editor’s Note: The following is a blog authored by Julian Gothard for Examiner.com.
John Sztykiel, president and CEO of Charlotte, Mich.-based Spartan Motors Inc., said during Tuesday’s (July 26) webcast following the company’s second-quarter earnings report that he remained bullish about Spartan’s future prospects in spite of the company recording a Q2 adjusted net loss of $424,000. The loss came on the back of $2.8 million in restructuring charges and a dramatic 14% drop in sales which cost the company some $16 million in lost revenue.
Sztykiel, who expects growth in both company revenue and earnings in the second half of the year, was upbeat about Spartan’s performance in the recreational vehicle market where, in spite of a slight improvement in the RV market as a whole, Spartan experienced a 26% fall in chassis sales. The Spartan CEO noted that the motorhome sales mix has shifted from high-end diesel to less expensive models in the Class A and Class C markets with some existing customers downsizing and new customers opting for smaller sized motorhomes.
As reported in June, Spartan Motors is relocating in 2012 their motorhome chassis manufacturing operation from Charlotte, to Wakarusa, Ind. Northern Indiana is home to many of Spartan’s chassis customers. Indeed, more than 60% of all RV’s and 58% of all Class A motorhomes are manufactured in the Hoosier State.
Sztykiel reiterated that Spartan’s current focus will remain on motorized RVs principally because of the size of the RV market from a dollar perspective and the RV market’s continued popularity amongst vacationers. An “RV is not only … inexpensive but it gives you the freedom to go wherever you want whenever you want. Thus as we look to the future we’re still very, very excited about it,” he said.
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