The Shyft Group, which builds Spartan chassis for the RV market and others to fit other types of specialty vehicles, reported second quarter sales of $225.1 million, a drop of $7.1 million from the $232.2 million recorded in the second quarter of 2022.
It reported adjusted net income of $8.7 million compared to $7.5 million in the prior year quarter.
“We delivered second quarter results in line with our expectations led by strong specialty vehicles performance while also driving robust cash generation,” said Daryl Adams, president and CEO. “We experienced challenges in the fleet vehicles and services business as market conditions deteriorated and operational inefficiencies remain. We continue to flex our operations while implementing additional cost reductions to reflect lower short-term demand.”
The fleet and service vehicles division had sales of $139.0 million, an increase of $2.1 million from a year ago, while specialty vehicles, which includes RV chassis, had sales of $87.6 million, a decrease of $7.7 million.
“Our prior concerns surrounding a tougher demand environment materialized late in the quarter,” said Jon Douyard, chief financial officer. “As softness in the parcel market continued and dealer inventories remained high, last-mile customers deferred and cancelled orders leading to lower OEM chassis production. In addition, consistent with broader recreational vehicle markets, we are experiencing incremental weakness in our motorhome chassis business. These headwinds have negatively impacted our full-year outlook.”
