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Coachmen
RV
-
"soft
market"
but
"encouraging
results"
Gaining
market
share
First
quarter
2007
results
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April
23rd,
2007
-
Coachmen
Industries,
Inc.
announced
its
financial
results
for
the
first
quarter
ended
March
31,
2007.
"At
the
bottom
line,
results
for
the
first
quarter
were
very
disappointing.
However,
much
of
this
was
due
to
events
which
we
do
not
expect
to
re-occur,
and
generally
due
to
the
continued
contraction
of
the
markets
in
both
our
industry
segments.
Further,
increases
in
market
share
on
the
RV
side,
and
the
coming
on
line
of
several
projects
on
the
Housing
side,
make
us
feel
confident
that
these
results
will
not
be
repeated
in
the
second
quarter,"
commented
Rick
Lavers,
Chief
Executive
Officer.
"Compounding
last
year's
market
declines,
for
the
first
two
months
of
2007,
total
industry
shipments
of
all
RV
types
fell
16.3%,
while
in
housing,
single-family
housing
starts
fell
24.6%
from
March
2006.
These
declines
exacted
a
severe
penalty
on
our
financial
results.
Nonetheless,
in
the
face
of
these
market
conditions,
it
is
extremely
encouraging
that
in
the
most
current
Industry
data,
through
February
we
achieved
retail
market
share
gains
in
both
Class
C
and
Rear
Diesel
Class
A
motorhomes.
Further,
total
company
sales
increased
sequentially
month
over
month
in
the
first
quarter
of
2007.
We
reduced
finished
goods
inventory
levels
by
$4.2
million
from
last
quarter.
In
addition,
we
managed
our
balance
sheet,
reducing
our
debt
levels
and
managing
working
capital,
resulting
in
$4.1
million
in
operating
cash
flows
for
the
quarter."
Recreational
Vehicle
Segment
"The
RV
Group's
financial
results
for
the
first
quarter
were
far
below
our
goals,
largely
due
to
soft
market
conditions
resulting
in
an
incentive
rich
selling
environment.
Even
so,
the
changes
to
our
products
and
organizational
structure
undertaken
in
late
2006
began
to
show
encouraging
results
in
the
quarter.
The
positive
reception
to
our
new
product
offerings
resulted
in
retail
market
share
gains
in
Rear
Diesel
Class
A
and
Class
C
motorhomes
as
well
as
growing
momentum
in
our
fifth-wheel
and
sport
utility
trailer
offerings
which
should
bolster
future
revenues,"
said
Michael
R.
Terlep,
President
of
the
Coachmen
RV
Group.
"Despite
these
positive
developments,
the
Group's
margins
were
sharply
reduced
due
largely
to
a
selling
environment
replete
with
discounts
and
incentives
coupled
with
a
shift
to
lower
priced
units
and
much
lower
production
levels."
You
can
read
the
full
press
release
here
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