Spartan Motors 1Q profit doubles on military sales

Spartan Motors Inc.'s profit more than doubled in the first quarter as the vehicle manufacturer countered a struggling motorhome market by selling more vehicles to the military, the company said Thursday.

Spartan earned $14.8 million, or 45 cents per share, in the first quarter, compared with profit of $7.2 million, or 22 cents per share, in the first quarter last year.

Analysts polled by Thomson Financial expected profit of 28 cents per share.

Sales surged 92 percent to $264.1 million from $142.9 million. Analysts forecast sales of $235 million.

The company credited its flexible manufacturing model. Faced with a downswing in demand for motorhome hulls _ motorhome sales shrank 32 percent in the quarter _ the company ramped up production of military and emergency-rescue vehicles.

Spartan "rescaled" its motorhome business to accommodate more mild demand.

The company's backlog shrank 5.1 percent during the first quarter to $237.3 million at the end of March.

Profit margin compressed to 15.4 percent from 17.3 percent because military customers were able to wring better prices for vehicles from the company.