The Decline Of Mobile Homes: Skyline Corp Shows Weak Quarterly Numbers

| About: Skyline Corp. (SKY)

Manufactured Housing is one of the worst performing industries right now, and one of its biggest companies, Skyline Corp. (NYSE:SKY), has just issued its report for the second fiscal quarter, which ended November 30, 2006, while it shows continued weakness.

For the second quarter, Skyline's earnings per share were $.07, compared to $0.54 for the same quarter last year.

Sales for the second quarter were $94,786,000, compared to $136,487,000 for the same quarter last year.

Skyline suffered an operating earnings loss of $470,000 in the second quarter, compared to a gain of $6,202,000 for the same quarter last year. Revenue and earnings per share were also down in the first fiscal quarter compared to the same quarter last year.

And the upcoming third fiscal quarter is usually the company's slowest. However, Skyline has lots of cash; for the 6-month period ending November 30th, 2006, working capital was $145,671,000 compared to $164,225,000 for the 6-month period ending May 31, 2006.

Skyline Corp. sells manufactured housing and RVs, and it has a market cap of over $300-million. Before the second quarter report, the PE was about 23, but factoring in the latest EPS from the second quarter, it appears the PE has risen to at least 33.

Disclosure: Author is short SKY.

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