– Supreme Industries, Inc., a manufacturer of specialized transportation products, including truck bodies and shuttle buses, announced its financial results for the 2006 first quarter ended Apr. 1, 2006. The company recorded net sales of $85.7 million for the quarter ended Apr. 1, 2006, compared to $90.3 million for the same period last year, a decrease of $4.6 million. Net income for the first quarter was $1.4 million, or $0.11 per diluted share, in 2006 compared to $3.1 million, or $0.25 per diluted share, in 2005.
Gross profit for the first quarter of 2006 decreased to $9.6 million, or 11.2 percent of net sales, versus $11.6 million, or 12.9 percent of net sales, in the same period last year. In addition to revenue decline, the delays in customer supplied chassis caused the company to reschedule certain production capacity. As a result, both direct labor and overhead increased as a percentage of net sales as compared with the prior year’s first quarter. Additionally, the company began to experience upward cost pressures on aluminum, steel, and wood component costs during the first quarter. To combat the material cost increases, Supreme has implemented price increases ranging from three to five percent on certain high volume truck division products effective in late-Apr. 2006.