Elkhart, Indiana-based Skyline Corp. (NYSE: SKY) announced in an 8-K filing with the SEC last week that it plans to suspend operations at its manufactured housing facility in Mansfield, Texas.
“The suspension is due to the plant being unable to profitably operate since it was converted from producing recreational vehicles to manufactured housing in fiscal 2014,” said CEO Richard Florea in an announcement to employees at the plant.
“Challenges this location faced included fewer independent manufactured housing dealerships buying homes than anticipated resulting in sales volumes not reaching profitable levels.”
Skyline anticipates having sufficient orders to maintain production at the facility for the next six to eight weeks, and is seeking potential buyers for the facility.
If a buyer cannot be found by the time current production is completed, Skyline says that the majority of the workforce is expected to be terminated during a two-week period beginning March 27, 2017 and ending April 10, 2017.
It has been a wild ride for Skyline over the last few months, including activity that yielded a 278% stock price increase and the company’s stock price hitting a 52-week high.
Investors have also been active, including Vector Capital Management increasing its stake in Skyline by 805 percent in December.
“Our continued focus on growing sales and improving margins through disciplined operations generated favorable year-over-year results in the quarter,” said Florea, commenting on a recent earnings report.
“While we are pleased with the progress we are making, we are committed to capitalizing on the opportunities we have.“
The most recent earnings report from Skyline Corp. is linked here.
For the 8-K filing announcing the Mansfield facility shutdown, click here.
Skyline is one of the industry stocks monitored each business day on the MH Industry’s leading professional news resource, the Daily Business News, on MHProNews. For yesterday’s closing numbers on all MH industry-connected tracked stocks, please click here. ##
(Editor’s Note: for our interview with Skyline’s Terry Decio, please click here.)
(Image credits are as shown above.)
Submitted by RC Williams to the Daily Business News, MHProNews.
