Middlebury-based Coachmen Industries records loss in third quarter 2008

Greater Fort Wayne Business Weekly

Middlebury-based Coachmen Industries reported a third-quarter 2008 net loss of $14.5 million, or 92 cents per share. Last year during the same period, the recreational-vehicle company had a net loss of $4.3 million, or 28 cents per share.

The company reported third-quarter net sales of $74.8 million compared to $123.9 million in the same period in 2007.

Coachmen saw a decrease in gross profit for the quarter, dropping to $500,000, or 0.7 percent of revenue, from $7.8 million, or 6.2 percent of revenue, in the third quarter of 2007.

Sales for the nine-month period ended Sept. 30 were $292.8 million compared to $403.9 million in the same period last year.

Through September, gross profit improved to $17.2 million, or 5.9 percent of revenue, from $15.2 million, or 3.8 percent of revenue, in the first nine months of 2007. Operating expenses decreased $8.4 million from last year to $32 million.

The company reported a net loss of $16.1 million, or $1.02 per share, during the nine-month period compared to a net loss of $24.9 million, or $1.58 per share, for the year-ago period.

In a statement, President and CEO Richard Lavers said Coachmen has secured an agreement with Jinbei Auto, one of the largest auto manufacturers in China, to develop recreational vehicles specifically for the Chinese market. The Chinese manufacturer will act as Coachmen's importer, distributor and sales partner in China.