Ocala, FL, June 8, 2006--Manufactured home producer Nobility Homes reported net income in the second quarter that was up 13% to $1.9 million. Diluted earnings per share for the quarter rose 12% to $0.46 per share.
The company reported record sales for the quarter. Sales were up 7% to $16,.7 milllion.
Terry Trexler, president stated, "Second quarter sales of fiscal 2006, continued to be adversely impacted by the very competitive and difficult environment in the manufactured housing industry. Second quarter sales and earnings of fiscal year 2006, although a strong sales quarter for our retail organization, were adversely impacted by the volatile pricing in lumber, OSB, sheetrock, steel and oil related products and services.”
Trexler said, ”Overall, most construction materials, including materials used in the set-up of our homes, have increased or fluctuated widely in price over the past year with little price stability in sight. Nobility continues to out-perform the industry; however, in the near term we anticipate continued pressure on both sales and earnings resulting from these factors. Management remains optimistic for fiscal 2006, convinced that our specific geographic market is one of the best long-term growth areas in the country and because of the strong operating leverage inherent in the company. With an improving economy, stable unemployment claims, and increasing but still low interest rates in 2006, management expects the demand for our homes to remain strong. The company is well positioned to capitalize on the demand in the future by controlling the retail distribution, financing, and insuring of our homes and by being financially sound to take advantage of opportunities as they develop."
Nobility Homes, Inc., has specialized for the past 39 years in the design and production of quality, affordable manufactured homes at its two plants located in central Florida. With nineteen company retail sales centers, a finance company joint venture, and an insurance subsidiary, Nobility is the only vertically integrated manufactured home company headquartered in Florida.
