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Spartan Income Up in Q3 as Chassis Segment Drops

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Spartan Motors reported sales increase of 8.9 percent for the third quarter of 2016, as net income reached $2.7 million, compared to a net loss of $5.8 million in the third quarter of 2015.

Despite the uptick , Spartan’s Specialty Chassis and Vehicles segment dropped 26.1 percent, as motorhome chassis sales dropped 31.1 percent for the company, compared to the same period last year.

The company said the drop was primarily due to a unnamed customers’ one-time inventory adjustment. The company reported it expected shipments to the customer to normalize in the fourth quarter.

Sales for Spartan Motors increased to $148.7 million from $136.6 million

“Our solid third-quarter 2016 financial performance was primarily led by another strong contribution from our Fleet Vehicles and Services segment that continued to help drive both revenue and profit growth,” said Daryl Adams, President and Chief Executive Officer of Spartan Motors.

 

Specialty Chassis & Vehicles

Meanwhile, the company’s specialty chassis and vehicles segment’s revenue decreased $10.1 million, or 26.1 percent, to $28.6 million from $38.7 million.

Sales of motorhome chassis declined 31.1 percent to $22.3 million from $32.4 million, due primarily to lower unit shipments year-over-year, resulting from a customer implemented, one-time inventory adjustment related to its dealer and on-hand inventory.

Shipments to this customer are expected to return to pre-adjustment levels during the current fourth quarter.

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