Early 1998 RV Deliveries Reach Highest Levels in 20 Years
According to RVIA, first quarter 1998 RV shipments rose to their highest levels in two decades continuing the best five-year period since the industry's 1970s heydays. The surge ran the gamut of products sold by RV dealers -- motorhomes and towables.
From January through March, total shipments of motorhomes and towable RVs climbed 11. 6% over the same period in 1997.
Motorhome deliveries increased 13.% over last year's first quarter. Class A units gained 13.5% and Class C's 21.9%.
Shipments of towable units were up 11.1% over the same period a year ago, marking the best January through March in 21 years. Among all towables, deliveries of fifth-wheel trailers were the highest on record.
RVIA president David J. Humphreys, said "The strong sales show that RVs are 'in' with a whole new group of buyers. Baby boomers, recalling road trips of their youth, want to recreate the experience with their own families in far greater comfort and convenience."
According to a recently released University of Michigan Survey Research Center study, more than 45% of current RV owners are between the ages of 35 and 54.
RVIA Economist Optimistic About Remainder of 1998
John DeWolf, RVIA's economic consultant, says that RV Shipments are expected to gain nearly 7% in 1998
Writing in RV Roadsigns, a quarterly economic newsletter, DeWolf stated, "During the first quarter shipments grew to an annual rate of 285,000 units. We now see them running at better than 265,000 for the balance of the year which should result in shipments of 272,000 units this year, a climb of 6.9% from their 1997 level of 254,500 units. Further, gains should continue for several years, with an increase of another 8,000 units or so in 1999. This is a much better outlook than we were predicting in our last RV Roadsigns."
He predicted towables will account for more than half the gain in shipments in 1998. He added, "We now see shipments of towables gaining almost 8% for the year, to 215,300. Conventional travel trailers, up nearly 11%, will outpace folding camping trailers, up 7.6 percent and fifth-wheel travel trailers, up better than 6%, as the biggest gainers. Motorhomes will be up a little more than 3%, with Type A up 5.6 percent. Looking ahead to 1999, towables should continue to gain around 8%, while any gains in motorhome shipments could be more modest."
Winnebago Treats Plant Tour Visitors Royally
Winnebago Industries plant tour participants ride in comfort and style in the new Visitor's Center plant tour vehicle. Based on a 1998 Winnebago Adventurer shell, the unit comfortably seats 30 people and features air conditioning, a stereo speaker system, television and VCR. The unit also has brochure racks lining the walls with the latest Winnebago product literature.
Winnebago offers tours Monday through Friday (except holidays) from April through October.
Thor Reports Best Sales, Earnings Ever
Thor Industries, Inc. (NYSE: THO) announced record results for the third quarter and nine months ended April 30, 1998.
Sales for the third quarter were $206.9 million, up 22% from $169.3 million last year. Net income for the quarter was a record $6,135,000, up 41% from $4,358,000 last year. E.P.S. for the quarter were a record 50 cents, up 39% from 36 cents last year.
Sales for the nine months were a record $506.9 million, up 14% from $443.3 million last year. Net income for the nine months was a record $15,145,000, up 40% from $10,840,000 last year. E.P.S. for the nine months were a record $1.24, up 44% from 86 cents last year. E.P.S. for the 9 months without a one time gain on sale of a subsidiary were $1.16, up 35% from last year.
Wade F. B. Thompson, Thor chairman, said, "These results are the highest the company has ever achieved in any quarter. On May 1, 1998, backlog was about $165 million, a record, and up 27% from last year. RV sales in the quarter were a record $163.6 million, up 20% from $136.1 million last year and $391.5 million in the 9 months, up 14% from $342.4 million last year. Bus sales in the quarter were $43.3 million up 30% from $33.2 million last year and $115.3 million in the 9 months, up 14% from $100.9 million last year."
Thor's quarterly dividend of 2 cents per share will be paid on July 2, 1998 to stockholders of record on June 17, 1998.
Louisville Park Trailer Trade Show Remains Scheduled for Year 2000
The Recreation Park Trailer Association (RPTIA) has not backed down on its intention to produced their own trade show coinciding with the National RV Trade Show in 2000 despite RVIA's decision to not cooperate with RPTIA.
Bill Garpow, executive director of RPTIA, said, "Our board members were pleased with the welcome news that RVIA was restoring first drawing seniority privileges to RPTIA members, and they would henceforth be able to combine their park trailer displays into their RV exhibits at the Louisville Show. Their policy of limiting park trailer exhibitors to 1,000 square feet of show space when the show is sold out prior to the show drawing remains in effect. The news that RVIA would neither support nor cooperate with RPTIA's planned separate downtown park trailer show scheduled for the Commonwealth Convention Center in Louisville beginning in 2000 was disappointing. Therefore, the board directed that staff continue working on the development of the Park Trailer Trade Show and to retain RPTIA's options for this event scheduled to coincide with the RVIA Louisville Trade show dates."
Failed Lemon Law Case Forces Consumer to Pay Fleetwood's Court Costs
In a milestone case being called a major blow to consumers, the California Supreme Court ruled an Inland Empire man who unsuccessfully sued a unit of Fleetwood Enterprises under the state's "Lemon Law" must pay the company's court costs. The consumer had sued Fleetwood's motorhome manufacturing subsidiary.
RV manufacturers, trying to stem a growing tide of consumer lawsuits over defects, applauded the 6-1 decision.
Michael McCullough, assistant general counsel for Fleetwood, said "We think this is a fair judgment that puts some risk into plaintiffs who don't have a meritorious case. It puts a downside on it and also encourages settlement."
Lazy Days Plans Expansion
Lazy Days RV SuperCenter will embark on a $12 million expansion program designed to enhance the entire sales, service, and delivery process its customers experience during their visit with Lazy Days, according to Don Wallace, president. He said, "Comprehensive plans have been approved to add an additional 150,000 sq. ft. service bay facility and a state-of-the-art body shop complex. This will add an additional 130 service bays to the existing 122 bays found today. This will greatly enhance the service capabilities that we feel our customers deserve.
"We will also be adding an additional 400 RV display spaces and 75 double-wide delivery sites. These delivery sites will allow our customers to park their trade unit right next to their new purchase for a comfortable and convenient transfer of their personal belongings."
Coast Acquires Washington Based Marine Distributor
The Coast Distribution System, Inc. (Amex: CRV) has acquired the marine aftermarket parts and accessories business of Marine Distributors, Inc. (NMI), a Seattle, Washington based company. NMI's annual sales are approximately $7 million.
Thomas R. McGuire, chairman and chief executive of Coast, said, "While we are gaining market share and enjoying solid growth in our core RV business, we believe we have the opportunity for sizable growth in the marine business. Coast has operated its RV and marine businesses as though the marine customer has the same needs for sales and service as the RV customer. While this approach has added incremental volume to our business, it has not allowed us to become the primary supplier to the marine dealer. We believe that the purchase of this inventory at a meaningful discount, coupled with the retention of the key personnel, affords us a significant opportunity to segment the two businesses on the sales and marketing side. This is important to the customers and at the same time allows us to leverage our infrastructure of distribution centers and centralized corporate functions.''
RPTIA's Park Trailer Seals Hits All Time Record High
Recreation Park Trailer Association (RPTIA) manufacturing members have purchased record levels of RPTIA standards seals. Comparing seal purchases from the past 12 months ended May 1998 with the same period last year , the numbers reflect a 26% increase.
Sales per month averaged 674 seals over the past year while the previous year's average was only 534 seals per month.
Fleetwood Homes Receives National Award for Manufactured Housing Achievements
Fleetwood Enterprises, Inc., (NYSE: FLE) has been named Manufacturer of the Year by the National Manufactured Housing Congress. This is the fifth time Fleetwood has received this title in the award's seven-year existence. The award represents the highest national honor given in the manufactured housing industry.
Camping World Unveils New Product Expanded Protection
Camping World has announced a Product Expanded Protection (PEP) plan to provide customers greater protection for their RV accessories at the time of purchase. The expanded warranty program covers 100 percent of parts and labor on repairs with unlimited local service. There are no deductibles to satisfy or maximums to meet.
PEP expands manufacturer's warranty coverage from one to five years (depending on the item) for select Camping World products including window, door and patio awnings, sunscreens, patio rooms, compartment generators, air conditioners, refrigerators and leveling systems.
Heather Hall, manager of product warranty at Camping World, said, "Manufacturer's warranties are often limited and do not always fully cover parts and labor or provide coverage for an extended period of time. Not only do we expand the manufacturer's warranty, we also pay all parts and labor. For example, our coverage on patio awnings not only expands coverage to include 100 percent of parts and labor, but it also covers damage due to excessive rain and wind. This is unduplicated in the industry."
According to Hall when compared with the cost of a single repair, customers can save quite a bit of money with a service contract. Additionally, PEP offers "Peach for a Lemon" protection. If a product fails three times due to the same problem or is not repairable, it will be replaced at no charge to the customer.
Pope's St. Louis Visit Forces Change of Dates for St. Louis RV Camping Show
In January, 1999, Pope John Paul II will be making a visit to St. Louis and holding mass at the TWA Dome. This has resulted in several
events having to be rescheduled including the St. Louis RV Camping & Travel Show. The show, originally scheduled for January 14-17, 1999, will now be March 4-7, 1999. This will be the 22nd year for the Show and the third year in the TWA Dome.
The St. Louis RV Camping & Travel Show is hosted by the Midwest Gateway RV Dealers' Association.
Sportscoach Motorhome Wins Industrial Design Excellence Award
The new Sportscoach motorhome, unveiled last December by Coachmen Recreational Vehicle Company after more than two years of development, has been awarded a 1998 Industrial Design Excellence Award (IDEA). The Bronze award conferred to Coachmen exemplifies excellence in product design as judged by 13 jurors of the Industrial Designers Society of America. Jurors scored how well the Sportscoach fulfilled five criteria of industrial design excellence: design innovation, benefit to the user, benefit to the client/business, ecological responsibility and appropriate aesthetics and appeal. Coachmen RV Company is the only RV manufacturer to win an IDEA award this year. It's only the second time in the 19 year history of the awards that a recreational vehicle manufacturer has won an award for motorhome design.
Michael R. Terlep, president of Coachmen Recreational Vehicle Company, said, "We're honored and proud to be the only recreational vehicle manufacturer to win this prestigious product design award this year. Earning this award certainly adds to the immense satisfaction our design and production teams already feel from the enthusiastic reception the Sportscoach received from our dealers and the trade press. A nod of approval for the Sportscoach design from the Industrial Designers Society of America should serve as further proof to our customers that Coachmen RV Company is continuing to lead the way with award-winning class A
motorhomes that are truly revolutionary."
The awards ceremony will take place in San Diego in September, as the closing event of the Industrial Designers Society of America National Conference.
Winegard Extends Free Receiver Offer
Winegard Company is extending their free Dish Network® satellite receiver offer through October 31, 1998.
Dish Network is one of the leading providers of satellite programming in the U.S. They have recently launched a third satellite, increasing capacity for additional premium programming, sports, movies and local network stations.
When a consumer purchases any Winegard mobile satellite system, plus one year of Dish Network America's Top 50/CD programming, the receiver is free. The programming package cost is $300.00 annually.
Winegard includes a redeemable numbered certificate with each mobile satellite system. After purchasing the mobile satellite antenna, the consumer can call the Winegard 800 number on the certificate for their free receiver when they subscribe to one year of America's Top 50/CD programming.
Tekonsha Towing Launches Internet Site
Designed specifically to meet ongoing dealer needs, Tekonsha's new web site (www.tekonsha.com) features detailed product, merchandising and troubleshooting information that is easy to access.
Joan McKinnon, general manager, Tekonsha Towing Systems, said, "Our primary objective with this site was to make our dealer's lives somewhat easier. It helps them answer customer questions, access product information and order promotional merchandise quickly and without the hassle of a phone call."
Airxcel Taps the Weiss Co. for Coleman Mach Air Conditioners and Suburban Products in Pacific Northwest
RV Products and the Suburban, divisions of Airxcel, Inc., has changed its warehousing and sales organization in the Pacific Northwest.
Effective immediately for customers in the Pacific Northwest Suburban furnace, water heater and range products, and Coleman® Mach® air conditioners will be stored and shipped from the warehouses of the Weiss Co., in Portland, OR., and Caldwell, ID. The Weiss Co. will also provide sales representation for these products in Washington, Oregon, Idaho. Montana and Utah.
In the northwestern United States, customers for products manufactured by the Suburban and RV Products divisions may contact the Weiss Co. at 800-678-8002.
Fleetco Products Acquires Air-Ax Suspension Systems
Fleetco Products, Inc., Gilbert, AZ has acquired Air-Ax Suspension Systems and the Air-Ax park leveling systems, according to Gerald L. Hartman, president of Fleetco Products, Inc.
The 15 year old Air-Ax is a manufacturer of air ride systems for motorhomes and pickup trucks. Hartman said, "In addition, designs are in the works for an air suspension system strictly for travel trailers as well." Hartman expects these units to be available in the near future.
Hartman added, "All in all, we are very intrigued with the potential of this product, not only for our distributors, but also for the beleaguered RVer who only wants to go on the trip and come back without being beaten up by the roads."
More information on Air-Ax is available on the Internet at: http://air-axcom.
Jay Haynor Passes Away
C. Jay Haynor, technical editor of Family Motor Coaching magazine and one of the most respected technical consultants in the RV industry, passed away in May following complications from a heart value replacement surgery. Haynor originally underwent the operation in April, but subsequent problems with the operation eventually took his life.
Haynor, an employee of Ford Motor Co., became involved with Family Motor Coaching in 1984 and was named technical editor in 1987. He also headed up FMCA's Technical Advisory Committee, a group that reviewed all technical articles published in Family Motor Coaching magazine for technical accuracy prior to publication.
A memorial fund in Haynor's name has been set up and those wishing to make a donation should send it to:
Christ Presbyterian Church
C. Jay Haynor Organ Fund, 515 E. Main Street
Marlton, NJ 08053
U-Line Enhances Warranty
Refrigerator and ice-maker manufacturer U-Line Corporation of Milwaukee, WI, recently upgraded its warranty to include one year of coverage on labor. The warranty already offered one year on parts and five years on the compressor. between two and five years.
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