Friday, July 25, 2008
COACHMAN LAYS OFF
RV Business
Friday, July 25, 2008
Coachmen Industries Inc. executives conceded they did not foresee the economy taking the steep decline it has but President and CEO Richard Lavers confidently told investors the company will survive.
As reported by the Elkhart Truth, the RV and housing manufacturer reviewed Thursday (July 24) its financial results for the second quarter of 2008. Middlebury, Ind.-based Coachmen ended the quarter with a $3 million loss and the opening six months with a $1.6 million loss.
To improve the performance of the RV division, the company has "specific action plans and goals" for further cost savings that include more plant consolidations and additional wage and salary reductions, said Mike Terlep, president of the Coachmen RV Group. These changes are scheduled to happen over the next several weeks.
During the second quarter, the company laid off 261 employees, Lavers said. Coachmen will make "minor adjustments" in the work force but nothing like the impending layoff at Monaco Coach Corp. of 1,430 workers.
The housing division turned in a positive numbers for the quarter, posting income of $3.1 million.
Characterizing the mortgage crunch as "one of the most difficult issues facing our customers, Housing Group President Rick Bedell said Coachmen has entered into a joint venture with American Home Bank to provide mortgage financing for all of the company's single-family home customers.
The partnership is expected to begin offering financial services in the third quarter.
"This will not be a robust year in terms of either sales or profits," Lavers said. "But the tourniquet that we applied in 2007 has staunched the hemorrhage to a dribble and the healing process is well under way. Coachmen will survive to prosper in a coming day."
Friday, July 25, 2008
Coachmen Industries Inc. executives conceded they did not foresee the economy taking the steep decline it has but President and CEO Richard Lavers confidently told investors the company will survive.
As reported by the Elkhart Truth, the RV and housing manufacturer reviewed Thursday (July 24) its financial results for the second quarter of 2008. Middlebury, Ind.-based Coachmen ended the quarter with a $3 million loss and the opening six months with a $1.6 million loss.
To improve the performance of the RV division, the company has "specific action plans and goals" for further cost savings that include more plant consolidations and additional wage and salary reductions, said Mike Terlep, president of the Coachmen RV Group. These changes are scheduled to happen over the next several weeks.
During the second quarter, the company laid off 261 employees, Lavers said. Coachmen will make "minor adjustments" in the work force but nothing like the impending layoff at Monaco Coach Corp. of 1,430 workers.
The housing division turned in a positive numbers for the quarter, posting income of $3.1 million.
Characterizing the mortgage crunch as "one of the most difficult issues facing our customers, Housing Group President Rick Bedell said Coachmen has entered into a joint venture with American Home Bank to provide mortgage financing for all of the company's single-family home customers.
The partnership is expected to begin offering financial services in the third quarter.
"This will not be a robust year in terms of either sales or profits," Lavers said. "But the tourniquet that we applied in 2007 has staunched the hemorrhage to a dribble and the healing process is well under way. Coachmen will survive to prosper in a coming day."
