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Shyft Group CEO: The Worst is Behind Us

The Novi, Mich.-based Shyft Group, formerly known as Spartan Motors, reported second quarter sales of $124 million, which was a decrease of 31 percent from the $180 million in the second quarter last year.

The company said its net loss in the quarter was $1.1 million, compared with $4.5 million last year.

“Despite the significant impact on our operations during the second quarter from the effects of the COVID-19 pandemic and the supply chain recovery taking longer than anticipated, I am pleased in the performance of our team,” said Daryl Adams, president and CEO. “We were able to take the necessary measures to help ensure the safety and well-being of our employees, while implementing cost improvement actions to help mitigate the impact of chassis and key component shortages resulting from the pandemic.”

The company’s specialty vehicle division reported sales of nearly $27 million, a decrease of 36 percent, which was primarily due to lower luxury motor coach chassis sales and contract manufacturing, though the loss was partially offset by the Royal Truck Body (Royal) acquisition completed in September 2019.

“We believe the worst is behind us and remain optimistic about the underlying strength of our end markets,” said Adams. “Throughout the second quarter, we saw production and output ramp up significantly. Our current backlog position remains robust and we continue to see strong demand for our products, including additional vehicles to support e-commerce growth, as well as chassis for luxury motor coaches.”

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