Housing slump undermines shares of Elkhart-based Coachmen Industries

IBJ Staff

Stock in Elkhart-based Coachmen Industries Inc. is sliding as the subprime mortgage implosion erodes opportunities for the Elkhart company to make money selling the houses it manufactures.

Coachmen shares are trading at $6.86, down from $9.58 as recently as July 19 and $12.90 last October.

On Aug. 27, Coachmen suspended its quarterly dividend of 3 cents per share, saying it plans to conserve cash at a time of uncertainty in the industry. Coachmen said its balance sheet is sound and that the company has more than $40 million available on its credit lines.

Coachmen also manufactures recreational vehicles and commercial buildings.