Featherlite Inc., Cresco, Iowa, reported a consolidated net loss for the first quarter ended March 31, 2003 of $676,000, a loss of $0.09 per diluted share on revenues of $41.7 million.

This loss was caused in large part by reduced gross profit due to lower net sales in the first quarter of 2003. This compares with a profit of $1.1 million, or $0.17 per diluted share, on net sales of $60.6 million in the first quarter of 2002. Consolidated net sales decreased by $18.9 million, or 31.2%, over the same period last year that experienced a surge in sales following the slowdown triggered by the events of Sept. 11, 2001.
"While net sales declined in the first quarter, we believe that Featherlite has gained market share in both the motorcoach and trailer segments," said Conrad Clement, chairman and chief executive officer. "This should position the company for future advantage as the economy recovers.
"Our first quarter performance did not meet our expectations," Clement said. "We believe the general economic uncertainty, the effect of the war in Iraq and dampened consumer confidence caused a significant percentage of buyers to delay their purchases in the first quarter of 2003.
"Yet our sales leads in the first months of 2003 are at record levels. With the announcement this month of Featherlite's new and enhanced trailer models, coupled with our strong marketing efforts and the cessation of hostilities in Iraq, we are cautious, but optimistic about improved sales and overall financial performance."
In addition, Clement said the company recently implemented a program to significantly reduce selling and administrative expenses and to reduce manufacturing labor and overhead in both the trailer and coach divisions.
Featherlite Inc. designs, manufactures and markets aluminum specialty trailers, transporters and luxury motorcoaches. Featherlite is the "Official Trailer" of NASCAR, Champ Car, Indy Race League (IRL), SPORTSCAR and World of Outlaws (W.O.O.).
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