Wednesday, May 26, 2010

PALM HARBOR'S LOSES CONTINUE

Palm Harbor's woes continue to mount. Their fiscal year ending March 26, 2010 had sales of $298.4 million compared to last fiscal year's $409.3 million. That's a drop of $111 million!

They are also seeing losses continuing to accumulate. Net loss for fiscal 2010 totaled $51.1 million compared with the net loss of $32.0 million last year. The two year total is over $83 million.

Nationwide Homes, part of the Palm Harbor empire just donated a modular home to Extreme Makeover Home Edition; a fact that was overlooked in the show; is also experiencing some tough times.


Let's hope that Palm Harbor, one of the biggest manufactured and modular companies in the US doesn't run aground. That could be a devastating injury to our industry.

Commenting on the results, Larry Keener, chairman and chief executive officer of Palm Harbor Homes, Inc., said, "In light of the ongoing challenges facing our economy and our industry, Palm Harbor has continued to take the necessary steps to revise our operating strategy to meet current and expected demand. Our results for the fourth quarter reflect the restructuring costs associated with the closure of 23 sales centers, one factory and other overhead reductions. With the completion of these actions during the quarter, we believe we are better positioned to effectively operate and achieve profitability in this business environment with a more efficient and sustainable footprint. We are realizing approximately $20.0 million in annual savings going forward and, as a result, we expect significantly better operational results in fiscal 2011."

1 comment:

Anonymous said...

Palm Harbor is just like the majority of old line HUD Code manufacturers in they do not know how to handle market troubles. With them owning sales centers they are used to just producing, producing, producing and stuffing them on their own sales lots.
Plus, they do not know how to enter the true modular market. When they purchased Nationwide everyone felt they wanted the modular technology so they could begin turning HUD Code plants into modular plants. Never happened and Nationwide did not become their flagship, which should have happened. And today Palm Harbor is just another multiplant operation that is faced with huge financial problems which may be a hole too deep from them to survive.
I am not sure it would be harmful for another primarily HUD Code company to breakup and sell off their assets as did Fleetwood. Nationwide can probably make it again as a stand alone modular operation and some of the other plants can be converted to modular or commercial plants.