REV Group reported a drop in sales and revenue in the second quarter of this year compared with a year ago, but the drop was offset by strong sales in its RV division.
The company reported second quarter net sales of $576.3 million compared to $643.6 million in the prior year quarter. It suffered a net loss of $2.3 million in the recent quarter, compared to net income of $20.6 million in the prior year quarter.
According to the company, the decrease in consolidated net sales was primarily due to lower net sales in its Fire and Emergency and Commercial segments, which were offset by an increase in net sales in what it calls its Recreation segment.
“Second quarter results reflect continuing shortages of key components and lower chassis supply that limited new starts, throughput and completions,” said REV Group President and CEO Rod Rushing said. “We remain focused on delivering value for our shareholders and are committed to deploying the operational improvement initiatives under REV Drive. Within the quarter, we enacted additional pricing actions to align backlog and new orders with our current and future build costs. Backlog and demand for our vehicles remains strong, and we believe the actions we are taking position us for improved results.”
The company’s RV division, which includes American Coach, Fleetwood, Holiday Rambler and Lance, reported net sales in the quarter of $241 million, an increase of $3.1 million from $237.9 million in the second quarter last year. The company said strong pricing and demand for a variety of RV styles was tempered slightly by issues with the supply chain.
Backlog at the end of the second quarter 2022 was $1.3 billion, an increase of $362.2 million compared to $940.5 million at the end of the second quarter 2021. The increase was primarily the result of strong demand and order intake in several product categories.
“We expect the current supply chain challenges will continue into calendar year 2023 versus our prior expectation for a recovery in the second half of the current fiscal year,” REV Group Chief Financial Officer Mark Skonieczny said. “Shortages of critical parts and chassis have negatively impacted performance, requiring us to update guidance.”