By Marilyn Odendahl, Truth Staff
modendahl@etruth.com
MIDDLEBURY -- About a week after Monaco Coach Corp. announced a major reorganization, homegrown Coachmen Industries will release its second-quarter results today.
"From the handwriting on the wall, it does not look good," said James Bryant, Hoover's Industry editor. "I would not be surprised if they had a net loss of sales and profits for the quarter."
At the close of the market Tuesday, Coachmen was trading 2 cents higher at $2 per share.
During the first quarter of 2008, the recreational vehicle maker posted sales of $121.3 million for both the RV and housing segments, a drop of 6.9 percent from sales in the same period of 2007. Of the total sales, RVs dropped 13.1 percent while the housing segment rose 18.2 percent.
The quarter ended with net income of $1.3 million, an improvement from the $10.4 million loss recorded at the end of March 2007.
For the second quarter of 2007, sales totaled $149.8 million, down 3.6 percent from the corresponding quarter the year prior. Net income from continuing operations posted a $10.1 million loss compared to a $480,000 profit recorded in 2007.
Coachmen's two segments of RVs and housing are the "two worst industries" to be in right now, Bryant said.
Earlier this year, Coachmen borrowed $10 million against the life insurance policies of its retirees and current employees which should, Bryant estimated, keep the company running for another three months.
"I don't know how desperate that indicates they are," Bryant said.