The Shyft Group President and CEO Daryl Adams said the company’s division including Spartan RV Chassis posted a strong performance in the second quarter. He characterized the high-end Type A market as “healthy.”
The company’s Specialty Vehicles segment, including Spartan RV Chassis, posted sales of $95.3 million in the second quarter, up 15.7% from the second quarter of 2021. The company said sales rose based in part on strong luxury motorhome chassis performance. Adjusted earnings for the segment rose 13.5% from the second quarter of 2021.
“The business continued its strong performance from the first quarter as we are focused on our growth strategy given some supply chain challenges,” Adams said. “Our motorhome chassis business continued to perform well and our service body business saw significant growth, despite chassis supply constraints. … High-end Class A motorhomes, our target segment of the RV market, is healthy as dealer inventories remain at historic lows and our share continues to be very strong. We expect these trends to continue for the balance of the year.”
The Specialty Vehicles segment also posted strong margins in the quarter, the company said. Adams said the supplier has been in a position to drive pricing into markets.
“We would expect that to continue here into the second half of the year,” he said. “I think the motorhome business is a similar story in terms of just operating efficiency that we have been able to get into the business.”
The company launched its Red Diamond aftermarket brand in the quarter. The brand will expand Spartan RV Chassis’ motorhome parts and service business beyond its own product.
“I think it is early days, but it is an opportunity for us to expand the view of what our parts and service has been historically,” said Jon Douyard, The Shyft Group chief financial officer. “We have traditionally been focused on serving Spartan RV Chassis customers. This provides an opportunity for us to work with other suppliers and manufacturers to expand that into other chassis providers. We think there is long-term value there and certainly have expectations of that, but in the short-term, certainly seen some positive strides.”
