Starcraft Announces Additional 3-Year Contract Between GM and Tecstar
6 March 2000
Starcraft Announces Additional 3-Year Contract Between GM and Tecstar Valued at $25 Million;`Xtreme' Package For 2-Door Blazers to be Built at New Plant in Linden, New JerseyGOSHEN, Ind.--March 6, 2000--Goshen-based vehicle converter Starcraft Corporation announced today that General Motors Corporation has awarded its Tecstar operation a 3-year contract to produce an upfit package for 2-door Chevrolet Blazers, to be sold nationally by Chevrolet dealers under the model name "Xtreme."
The 3-year contract, which begins with the 2001 model year, has an estimated sales value of $25 million. A new plant in Linden, New Jersey will be set up to fulfill the contract.
The new Blazer "Xtreme" includes enhancements like exterior graphics, ground effects, special wheels and lowered suspension. It is modeled after the widely popular Chevrolet S10 Pickup Xtreme, also built by Tecstar, a QS9000-certified joint venture with a Detroit area engineering firm.
Tecstar is just one example of how Starcraft, one of the nation's leading vehicle conversion companies, has extended into other product lines as part of aggressive diversification. While luxury van conversions remain at the core of the Company's business plan, it has also built divisions to manufacture mid-size shuttle buses and vehicles for people with disabilities. The mix of new ventures, along with Starcraft's traditional strength in the vehicle conversion market, combined to produce a first-quarter 2000 net income of $1.05 million, and $0.22 per diluted share, on sales of $36.2 million, a three-fold increase from the first quarter, 1999.
Starcraft Corporation is a leading manufacturer of second stage vehicle conversions through its Starcraft, Imperial, Bus, Tecstar and National Mobility divisions.
For additional information, contact Michael H. Schoeffler, Starcraft Corporation; 219-533-1105 x 257.
This news release contains forward-looking statements regarding market demand, sales, profitability, and other matters. Investors are cautioned that actual results may differ materially from such forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, level of customer demand, competitive pressures and other important factors detailed in the Company's annual report in Form 10-K for fiscal year 1999 filed with the Securities and Exchange Commission.