Spartan Motors has reported operating results for the second quarter ending June 30, showing a sales increase of $14.3 million, or 8.4 percent, to $184 million, from $169.7 million.
Commodity cost increases in 2018 resulted in a $1 million reduction to gross profit, primarily in fleet vehicles and services, offset by operational and organizational improvements. Net income improved $2.6 million, or 232.7 percent, to $3.7 million, from $1.1 million.
“Spartan’s second quarter results underscore our team’s exceptional performance in the face of challenging conditions that are impacting the entire industry,” said Daryl Adams, president and CEO. “Our team’s continued focus on Spartan’s core markets and their unwavering commitment to maximizing operational and organizational efficiencies, despite escalating commodity costs, have been essential in achieving our profitable growth this quarter.”
The specialty chassis and vehicles segment sales increased 32.7 percent to $47.5 million from $35.8 million a year ago. Revenues were driven mainly by a $9 million increase in luxury motor coach chassis sales, due to increased unit volume driven by market share gains and continued strong industry demand.
“The company’s first-half performance reflects solid topline growth and an acceleration in profitability, despite inflationary commodity costs,” said Matt Long, interim CFO of Spartan Motors. “Our commitment and ability to achieve profitable growth continues to reflect operational and organizational improvements across all production facilities.”