REV Group shared fourth-quarter earnings data and other financial information, reporting strong activity in its RV segment.
REV Group’s recreation segment sales rose 12 percent from a year earlier to $194 million, reflecting strong wholesale shipments and retail demand for Class B, Class C and towable units, the company said. Class A shipments were down mid-single digits versus last year’s production, limited by supply chain constraints which occured primarily in gas units.
“The backlog and production capacity are in place to support higher shipments once these bottlenecks clear,” REV Group Chief Financial Officer Mark Skonieczny told analysts, according to a transcript of the call provided by Seeking Alpha.
According to Skonieczny, segment backlog increased 220 percent, reflecting strong order intake across all RV categories over the past six months.
“The past two quarters were historic highs for orders by a substantial margin, and our current backlog is nearly double that of any point in REV’s recreation segment history,” Skonieczny stated, according to the Seeking Alpha transcript.
But 2020 was not all historic highs for REV Group. President and CEO Rod Rushing stated there were some unexpected challenges in 2020.
“We have implemented much change during that time,” he stated. “We began to see sequential improvements in our results.”
Rushing announced that REV Group hired Rob Vislosky as vice president and chief supply officer. Vislosky previously led Honeywell Intelligrated Global Supply Chain and was Honeywell’s Corporate Chief Procurement Officer.
Though Vislosky has only been in the position for a few weeks, Rushing said, “he brings to REV Group both the vision and the execution capabilities to build the best class global sourcing organization we are looking for and purchasing supply chain organization, combined with a sense of urgency to do this at a pace.”
