Starcraft Announces $150M Contract Extension Between GM, Tecstar
26 August 1999
Starcraft Announces Multi-Year, $150 Million Contract Extension Between GM, Tecstar
GOSHEN, Ind.--Aug. 25, 1999--Enhancement of Tahoes and Suburbans
Starcraft Corporation (Nasdaq Small Cap:STCRC) announced today that Tecstar, a firm jointly owned by Starcraft Corporation, of Goshen Indiana, and a Detroit-based engineering firm, has been awarded a five-year extension of its contract to produce upfit appearance packages for popular General Motors sport utility vehicles.
The contract has a total estimated value of $150 million, and is expected to provide $30 million in yearly sales.
The contract extension, which follows a successful 18-month introductory phase, takes regular production Tahoes and Suburbans, and adds items like ground effects, wheels, badging and interior enhancements, at the 100,000 square foot Tecstar manufacturing facility in Arlington, Texas.
"We are extremely proud to be acknowledged as the exclusive Tier 1 supplier for appearance enhancements to GM Tahoes and Suburbans," said Kelly L. Rose, chairman and CEO of Starcraft and Tecstar. "The program recognizes our ability to meet OEM quality and performance standards while allowing GM to capitalize on specialty markets quickly and profitably."
Starcraft's expansion into the Tecstar venture is one aspect of a wide-ranging diversification that has also developed profitable businesses in mid-sized bus production, and the conversion of vehicles for people with restricted mobility. All of the business units benefit from design, engineering, and assembly experience developed in the company's core business, the conversion of basic cargo vans into luxury passenger vehicles. All have shown marked improvement in sales and profit in recent quarters, resulting in a 138% increase in sales and a profit of $1.5 for the most recently reported quarter. Company sales for the first nine months of 1999 were $59 million.
Starcraft Corporation is publicly owned and traded on the Nasdaq Small Cap Market under the symbol "STCRC," and 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, at 219/533-1105, ext. 257.
This news release contains forward-looking statements regarding projected sales volumes 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, especially future orders from GM under the Tecstar program, competitive pressures and other important factors detailed in the company's annual report on Form 10-K for fiscal year 1998 filed with the Securities and Exchange Commission.