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September 2006

News Briefs

Auto Museum Moves Forward
State Farm has donated $1.5 million to help build the museum that will house the Harold E. LeMay automobile collection across the street from the Tacoma Dome in Tacoma. The donation brings the campaign to build the museum more than a third of the way toward its goal of $140 million.

State Farm will receive naming rights to the museum’s theater. Donations of $500,000 each were received recently from the Titus-Will and Gary E. Milgard family foundations. Groundbreaking for the museum, which is planned to house up to 2,000 vehicles, is scheduled for mid-2007, with the opening planned for 2009.

Fleetwood Reports Sales Decline
Fleetwood Enterprises of Riverside, California, opened the first quarter of 2007, which ended July 30, with a 12 percent decline in RV sales and a 29 percent drop in manufactured housing revenue. The bright spot was trailer sales, which surged 16 percent. The first quarter of 2007 was only 13 weeks, compared to last year’s 14-week quarter.

Elden L. Smith, president and chief executive officer, said, “As expected, higher, more volatile fuel prices and rising interest rates resulted in weaker motorhome sales during the quarter.” Smith said the company is turning to more affordable, fuel-efficient vehicles to strengthen its motorhome sales. Revenue for the first quarter was about $529 million.

Monaco Gains Revenue
Monaco Coach Corp. of Coburg, Oregon, reported increased revenue for the first six months of this year, compared with a year ago, aided by strength from its towable products, including the R-Vision group acquired in November of 2005. Revenue amounted to $706.4 million for six months, compared with $633.3 million in 2005. Net income was $8.7 million, up from $6.1 million a year ago.

The company said motorhome sales in the most recent quarter fell by 12.3 percent, attributing the decline to lower consumer confidence because of higher interest rates and gas prices. “Strength in the towable and resorts segments during the second quarter mitigated some of the challenges we faced in the motorized business,” said Kay Toolson, Monaco chairman and CEO.

Wildlife Tours Offered
The National Wildlife Federation is offering 34 tours in 2007 that focus on opportunities to view wildlife at locations ranging from the U.S. to China, Costa Rica and Australia.

The Wolves of Yellowstone Tour Feb. 17-22 will bring participants to the Lamar Valley of Yellowstone to see an area where wolves, grizzly bears, elk and bison all interact in one habitat. Those who want something farther afield might consider a safari to Chobe National Park in Botswana on New Year’s Eve to see Africa’s largest elephant herd. The tours are limited to 15 to 20 participants. For details on the expeditions, see the National Wildlife Federation Web site at www.nwf.org/expeditions or call (800) 606-9563

Drew Reports Record Sales
Drew Industries, a leading supplier of components for recreation vehicles and manufactured homes, reported record net sales of $202 million in the second quarter ended June 30, an increase of $39 million from the second quarter of 2005. Net income also was a record, $10.2 million.

Part of the gain came from the company’s acquisition of two chassis manufacturers, Venture Welding and SteelCo, but results were negatively impacted by losses of about $1 million from ending production of specialty trailers at a plant in Indiana. Drew Industries is headquartered in White Plains, New York.

Merritt Attracts Huge Crowd
About 135,000 people attended the recent Merritt Mountain Music Festival in British Columbia for six days of camping and country music. The event featured such music headliners as Martina McBride, Travis Tritt, Randy Travis, Darryl Worley and Big and Rich with Cowboy Troy.

Next year’s event will be held July 12-15, with campgrounds opening on July 9. For continued updates on the festival, visit www.mountainfest.com.

Spartan Doubles Earnings
Spartan Motors, which builds chassis for motorhomes, fire trucks and specialty vehicles, has reported a sharp increase in earnings and sales for the first six months of 2006. Sales reached $212.8 million, compared with $178.2 million during the same period in 2005. Net earnings more than doubled to $9.4 million.

The company said it increased RV sales, despite a downturn in the motorhome market, and it remains optimistic about its RV chassis business long term. The company reported a significant gain in backlog, with $241 million in orders, the highest in its history. Spartan is based in Charlotte, Michigan.

Affinity Adds Guide Publisher
Affinity Group has acquired American Guide Services, which serves the campgrounds, RV park and camping resort industry by producing local guides and promotional materials and which offers Internet services such as Web design and hosting. Affinity Group’s companies include Good Sam Club, Camping World, TL Enterprises, Woodall’s and Coast to Coast Resorts.