Supreme Industries (NYSE MKT: STS), a leading manufacturer of specialized commercial vehicles including truck bodies, trolleys, armored and specialty vehicles, today announced that it intends to divest its shuttle-bus business.
Shuttle bus products currently represent less than 12% of the company's consolidated sales and had a materially adverse impact on consolidated earnings in 2013. Meanwhile, Supreme's core business of manufacturing and selling customized truck bodies has recently undergone successful facilities and manufacturing upgrades, resulting in enhanced operating efficiencies and margins for these products. The divestiture is intended to expand profit margins on a consolidated basis.
"As a proportion of revenue mix, bus products have represented a declining percentage of our sales and shuttle buses, in particular, have failed to meet profitability objectives," said president and chief executive officer Mark Weber. "This action allows us to concentrate on markets where we can maximize future returns for shareholders and eliminate the substantial drag on earnings from the shuttle bus business."
"We remain committed to the trolley business," he added. "Furthermore, to avoid disruptions for our shuttle-bus customers, we plan to assist the future owners with a swift and orderly transition. This approach will optimize the value of the business and benefit all constituents including the new owners, customers and employees."
Additional information will be provided when the company releases its fourth-quarter and full-year 2013 financial results in February.