Spartan Sees 2Q Income, Revenue Edge Down
The company reported net income of $0.2 million, or 1 cent per share, compared to $0.7 million, or 2 cents per share in the year-ago quarter. Second-quarter net sales totaled $115.8 million, down 4.2% from $120.9 million.
For the six months, sales improved to $243.7 million versus $217 million the previous year while the company pared its net loss to $1.9 million from $3.5 million.
“Spartan posted net income of 1 cent per share in the second quarter, a substantial improvement from a loss of 6 cents per share in the first quarter of 2014,” stated Spartan CEO John Sztykiel. “The DSV and SCV segments again reported operating profits, and the performance of our ER group improved significantly from the first quarter of 2014. We are seeing the benefits of better operational execution and greater commercial discipline throughout the organization. We expect this positive trend to continue through the second half of 2014 as we execute our DRIVE strategy.”
Spartan’s Specialty Chassis & Vehicles division saw revenue decline to $24.1 million from $32.9 million in the second quarter due to lower sales throughout the segment, with the exception of Isuzu contract manufacturing operations. Motorhome chassis production decreased to $17.8 million from $20.4 million, as a major customer reduced orders to work off its RV inventory levels, the company said. Growth in shipments to other customers during the quarter partially offset these reductions.
Other second-quarter highlights include:
• Gross margin of 12.7% of sales versus 12.9%.
• Delivery & Service (DSV) operating profit of $1.7 million versus operating loss of $1.6 million.
• Emergency Response (ER) operating loss of $1.5 million versus operating profit of $0.4 million.
• Specialty Chassis & Vehicles (SCV) operating profit of $1.4 million compared to operating profit of $3.9 million.
• Order backlog increased to $246.7 million at June 30, 2014, from $242.7 million at Dec. 31, 2013.
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