COACHMEN INDUSTRIES EXPECTS LOWER EARNINGS FOR 3RD QUARTER
ELKHART, Ind., Oct. 18 /PRNewswire/ -- Coachmen Industries, Inc. (NYSE: COA -
news) announced today that third quarter earnings may be as much as 10 cents
below analysts' expectations. The company has continued to experience a downturn
in motorhome shipments, which is consistent with what some other RV
manufacturers have been reporting. While travel trailer shipments remain strong,
other towable RV shipments are down from a year ago. Changing consumer
perceptions with regard to volatile gas prices, increased interest rates and
fluctuations in consumer confidence have all contributed to lower earnings for
the quarter. Earnings were also impacted by higher costs associated with
increased sales incentives, lower production volume and related inefficiencies.
"Company operations remain profitable and combined with a strengthened balance
sheet, and on-going actions in support of our strategic plan, we remain
optimistic that performance will improve as market conditions strengthen," said
James E. Jack, Executive Vice President and Chief Financial Officer.
Coachmen Industries, Inc. is one of the nation's leading producers of
recreational vehicles and is the largest producer of modular homes in the U.S.
Recreational vehicles comprised 80 percent of Coachmen Industries' sales during
the first half of the year and modular construction represented 20 percent. This
release contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Investors are cautioned not to place
undue reliance on forward-looking statements, which are inherently uncertain.
Actual results may differ materially from that projected or suggested due to
certain risks and uncertainties including, but not limited to the potential
fluctuations in the Company's operating results, the implementation of its
enterprise-wide software, the availability and pricing of gasoline, the
Company's dependence on chassis suppliers, interest rates, competition,
government regulations, legislation governing the relationships of the Company
with its recreational vehicle dealers, impacts on high-cost discretionary
product purchases from fluctuations in the "wealth effect" and other risks
identified in the Company's SEC filings.
