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$2.4 Million Loss in Q3, Skyline Corp.

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Skyline Corp.

It has been a rough start to 2017 for Skyline Corp.

One of the oldest builders of manufactured housing in the nation, Skyline reported losses from continuing operations of $2.4 million in the third quarter of fiscal 2017, according to a press release detailing third quarter results. That was compared to a loss of $520,000 in the third quarter of fiscal 2016.

This story by Ben Quiggle originally appeared on The Elkhart Truth.

Overall for the first nine months of fiscal 2017, Skyline has lost more than $2.2 million from continuing operations, compared to an income of $339,000 during the same period of fiscal 2016.

In March, the company was forced to cease operation at a facility it leased from RV manufacturer Forest River after just 10 months of operating out of the facility, laying off 90 employees. According to third quarter results, the facility had contributed $4.3 million in net sales and incurred a loss of $323,000.

Sales for the company saw significant gains during the third quarter, however, jumping 8.3 percent from $47.6 million in 2016 to $51.6 million during the same period in 2017. For the first nine months of fiscal 2017, Skyline has seen an increase of 14.1 percent in sales, from over $155 million during the same period in fiscal 2016, to $177 million for fiscal 2017.

Skyline officials said that a majority of the losses came from increased labor costs due to hiring and training new employees at facilities that are increasing production output.

“In addition, newly-hired, inexperienced employees contributed to an increase in higher workers’ compensation and warranty costs for the period,” the press release says.

The company experienced no income or loss from discontinued operations during the third quarter, compared to a loss of $6,000 from discontinued operations during the same period in 2016.

The manufactured housing industry as a whole saw a big year in 2016, with December production ending the year up 22 percent from December 2015, according to statistics from the Manufactured Housing Institute, a national trade organization that represents the industry.

Compared to 2015, 11 out of 12 months in 2016 recorded shipment increases. For all of 2016, shipments totaled 81,169, that is a net increase of 15.1 percent over 2015.

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