CHARLOTTE, Mich., March 10 /PRNewswire-FirstCall/ — Spartan Chassis, a
subsidiary of Spartan Motors, Inc. (Nasdaq: SPAR), today announced that
Fleetwood RV is not renewing Spartan’s agreement to supply entry-level chassis
for its 2006 model year products, which will result in the loss of certain
Fleetwood business beginning in the third quarter of 2005.
As previously reported, Spartan was awarded the chassis business for
Fleetwood’s Providence, Excursion and Revolution 2005 models, which began
production in August 2004. This business represented approximately 10.7
percent of Spartan’s consolidated net sales in 2004. While this business will
conclude, Spartan said it will continue to supply chassis for Fleetwood’s
highline motorhomes.
“While our products and service excellence continue to lead the industry,
we could not meet the price demands for these entry-level chassis, and as a
result, a portion of our RV chassis business with Fleetwood will end,” said
Richard Schalter, president of Spartan Chassis. “We are taking immediate
steps to realign our cost structure to ensure we minimize the impact to our
earnings when these Fleetwood models conclude. At the same time, we remain
confident that we can achieve our target of better than 20 percent return on
invested capital at Spartan Chassis in 2005.”
About Spartan Motors
Spartan Motors, Inc. (https://theshyftgroup.com ) designs, engineers
and manufactures custom chassis and vehicles for the recreational vehicle,
fire truck, ambulance and emergency-rescue markets. The Company’s brand names
— Spartan(TM), Crimson Fire(TM), Crimson Fire Aerials(TM), and Road
Rescue(TM) — are known in their market niches for quality, value, service and
being the first to market with innovative products. The Company employs
approximately 900 at facilities in Michigan, Alabama, Pennsylvania, South
Carolina, and South Dakota. Spartan Motors is publicly traded on The Nasdaq
Stock Market under the ticker symbol SPAR.
The statements contained in this news release include certain predictions
and projections that may be considered “forward-looking statements” under the
securities laws. These forward-looking statements are identifiable by words
or phrases indicating that the Company or management “expects,” “believes” or
is “confident” that a particular result “may” or “should” occur, that a
particular item “bodes well,” that the Company “looks forward” to a particular
result, or similar statements. These statements involve many risks and
uncertainties that could cause actual results to differ materially, including
but not limited to economic, competitive, governmental and technological
factors affecting the Company’s operations, markets, products, services and
prices. Accounting estimates are inherently forward-looking. Additional
information about these and other factors that may adversely affect these
forward-looking statements are contained in the Company’s reports and filings
with the Securities and Exchange Commission. The Company undertakes no
obligation to update or revise any forward-looking statements to reflect
developments or information obtained after the date of this news release.
SOURCE: Spartan Motors, Inc.
CONTACT: John Sztykiel, CEO, or Jim Knapp, CFO, of Spartan Motors, Inc.,
+1-517-543-6400; Jeff Lambert or Ryan McGrath of Lambert, Edwards &
Associates, Inc., +1-616-233-0500, [email protected] , for Spartan
Motors, Inc.
Web site: https://theshyftgroup.com