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Coachmen Industries Expects Lower Earnings for 3rd Quarter

18 October 2000

Coachmen Industries Expects Lower Earnings for 3rd Quarter

    ELKHART, Ind., Oct. 18 Coachmen Industries, Inc.
announced today that third quarter earnings may be as much as
10 cents below analysts' expectations.  The company has continued to
experience a downturn in motorhome shipments, which is consistent with what
some other RV manufacturers have been reporting.  While travel trailer
shipments remain strong, other towable RV shipments are down from a year ago.
Changing consumer perceptions with regard to volatile gas prices, increased
interest rates and fluctuations in consumer confidence have all contributed to
lower earnings for the quarter.  Earnings were also impacted by higher costs
associated with increased sales incentives, lower production volume and
related inefficiencies.
    "Company operations remain profitable and combined with a strengthened
balance sheet, and on-going actions in support of our strategic plan, we
remain optimistic that performance will improve as market conditions
strengthen," said James E. Jack, Executive Vice President and Chief Financial
Officer.
    Coachmen Industries, Inc. is one of the nation's leading producers of
recreational vehicles and is the largest producer of modular homes in the U.S.
Recreational vehicles comprised 80 percent of Coachmen Industries' sales
during the first half of the year and modular construction represented 20
percent.
    This release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995.  Investors are cautioned not
to place undue reliance on forward-looking statements, which are inherently
uncertain. Actual results may differ materially from that projected or
suggested due to certain risks and uncertainties including, but not limited to
the potential fluctuations in the Company's operating results, the
implementation of its enterprise-wide software, the availability and pricing
of gasoline, the Company's dependence on chassis suppliers, interest rates,
competition, government regulations, legislation governing the relationships
of the Company with its recreational vehicle dealers, impacts on high-cost
discretionary product purchases from fluctuations in the "wealth effect" and
other risks identified in the Company's SEC filings.