Starcraft Corporation Reports Second Quarter Results

    GOSHEN, Ind.--May 3, 2001--Starcraft Corporation today announced results for the second quarter of fiscal year 2001 ended April 1, 2001.
    The Company incurred a net loss of $1,783,000, or ($0.42) per share (basic and diluted), on sales of $23.2 million compared to net income of $765,000, or $0.18 per share basic and $0.16 per diluted share, on sales of $36.4 million for the comparable quarter in the prior year. The current quarter's results include a charge for $418,000 of Tecstar's losses attributable to the Company's minority interest, recorded in accordance with ARB No. 51. To the extent that future earnings materialize in Tecstar, the Company will record additional income to the extent of such losses previously recorded.
    For the first half of fiscal 2001, sales were $42.0 million, compared to $72.5 million for the same period last year. Net loss was $3.9 million or ($0.93) per share (basic and diluted), compared to net income of $0.31 per basic share and $0.28 per diluted share. The current period included a $378,000 non-cash charge for the issuance of certain stock options. Also, included was a charge for $742,000 of Tecstar's losses attributable to the Company's minority interest, recorded in accordance with ARB No. 51.
    Domestic sales in the second quarter declined by $8.0 million as sales in its OEM automotive supply segment declined $10.9 million. The OEM automotive supply sales were adversely impacted by an extended plant shutdown in Texas due to a model line changeover. Bus and mobility vehicle sales increased 93% or $3.9 million while domestic conversion vehicle sales declined $1.0 million or 16%. The slowdown in the economy and higher gas prices reduced the demand for conversion vehicles. International sales of conversion vehicles declined by $5.1 million due to the decline in demand overseas.
    Michael H. Schoeffler, President and Chief Operating Officer, stated, "Starcraft's results continued to be negatively impacted by delays beyond our control in the OEM Automotive Supply segment. Now that all three plants are in production, results at Tecstar should improve dramatically in the third quarter." Schoeffler cautioned, "However, due to the economy and continued high gasoline prices, the Shreveport and Grand Prairie facilities are running below production levels of a year ago."
    Schoeffler went on to say, "Demand for bus and mobility vehicles remains strong and we have seen an increase in demand for conversion vehicles during the second quarter. In the meantime, we will continue to explore cost reduction opportunities in the conversion vehicle segment."