Coachmen posts $3 million loss in quarter

July 24, 2008 07:41 am

— MIDDLEBURY, Ind. — Coachmen Industries Inc. reported a $3 million loss in its second quarter. The loss is less than the $10.1 million deficit for the same quarter in 2007.
The loss is due to the slumping recreation vehicle market. The company’s housing segment posted a profit.
“Although we continued to implement substantial operational improvements and cost saving projects, because of the unexpectedly rapid and deep fall in the RV markets, Coachmen Industries Inc. reported a $3 million loss for the quarter ending June 30, 2008.
“Our Housing Group achieved another profitable quarter. However, the tremendous strides in cost reductions accomplished by our RV Group were insufficient to overcome the effects of extreme fuel prices and a continuing credit crisis, which has resulted in the lowest consumer confidence in over 16 years,” said Richard M. Lavers, president and chief executive officer.
“Our loss of $3 million for the quarter is obviously not what we strove to achieve, but it does represent an improvement in bottom line performance of $7.2 million or 71 percent from 2007 in the face of a 35 percent decrease in net sales. Through the first half, we have reduced our loss to $1.6 million from $21.5 million in 2007, an improvement of 93 percent, which is commendable given what is happening in both the housing and RV markets.
“Our operating expenses are tracking at less than 55 percent of last year’s level. These results demonstrate that the actions we have taken are working, and will allow us to weather this down cycle. Nevertheless, we must — and will — take even further measures to bring our costs in line with the revenues that are the reality of these market conditions,” Lavers said.
Housing Group
“The Housing Group’s core business of single family homes was again adversely affected by the dismal conditions in the nationwide housing market,” said Housing Group President Rick Bedell. “However, overall we are one of the very few housing businesses in the country to not only continue, but to increase our profits.
“A combination of our major project activities, improved gross margins and reduced operating expenses, helped to generate a pre-tax profit of $3.1 million compared with a pre-tax profit of $1.1 million for the year-ago quarter,” Bedell said.