Phoenix-based Cavco posts dramatic quarterly profit increase

Cavco Industries, a Phoenix-based maker of manufactured homes that has purchased two large competitors over the past two years, reported a dramatic increase in its profit for the latest quarter.

Net income for Cavco's fiscal first quarter, which ended June 30, rose to $17.5 million compared with $850,000 a year earlier, it said Monday. That's about a nineteenfold increase.

Earnings per share grew to $1.25, compared with 8 cents a year earlier. And revenue rose 108 percent, to $99 million.

Cavco and the Third Avenue Value Fund in August 2009 purchased Fleetwood Homes Inc. And Fleetwood in June completed the purchase of Palm Harbor Homes Inc. for $84 million.

The latest purchase gave Cavco five more operating factories, nine idled factories and 49 operating retail locations, and other assets. It is the nation's second-largest producer of manufactured homes as well as smaller park model homes, vacation cabins and commercial structures.

Despite the positive financial news, the company's share price was still victim to a major stock sell-off on Monday, dropping $2.33, or 6 percent, to $35.24. By Tuesday, the stock had risen 31 cents, or 0.9 percent, to $35.55.

by Betty Beard The Arizona Republic Aug. 10, 2011 12:00 AM






Phoenix-based Cavco posts dramatic quarterly profit increase