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Posts Tagged ‘raw materials’

Cavco’s Revenues Spiked Grandly, but……..

June 27th, 2012 Comments off

MSNBC tells us Seth Jason at The Motley Fool says he judges company performance by comparing inventory increases to revenue increases: if inventory expands faster than sales, it could indicate a problem, one which he suggests may be happening at Cavco Industries. Trailing 12-month revenue rose 157.9% while inventory increased 288.2%. When comparing the most recent quarter to the same quarter last year, revenue grew 156.3% and inventory rose 288.2%. But the sequential quarterly period saw revenue fall 13.1% and inventory drop only 0.1%. In addition, Jason notes the type of inventory—raw materials, work-in-progress, and finished goods—may be telling. A large increase in finished goods inventory may mean product is not selling well. MHProNews has learned at Cavco, on a trailing 12-month basis, finished goods inventory grew the fastest, increasing 1,023.6%. On a sequential-quarter basis, work-in-progress inventory grew the fastest, increasing 19.1%. The author does caution that numbers cannot tell the whole story: Call the company’s investor relations for a more thorough accounting. Cavco is one of the largest manufacturers of manufactured and modular housing in the U.S. Cavco’s stock gained 4.23% in today’s trading.

(Image credit: Cavco Industries, Inc.)

Canadian Component Manufacturer Goes West

April 11th, 2012 Comments off

MHProNews.com has learned from Calgary, Alberta, Canada Okaply Industries has opened a new factory in Calgary. Based in Oka, Quebec, just north of Montreal, Okaply manufactures pre-finished gypsum, MDF, plywood, particleboard, shelving and moulding for the manufactured and modular housing industries. The company services clients in Canada, parts of the U.S., Chile, Argentina, and Peru. In business for 46 years, HoustonChronicle says the company also purchased robotic feeds for their lamination production lines in Okla and in Calgary. Company president Craig Starke says, “We are one of the companies in the supply chain that is benefiting from the rise in commodity prices for raw materials such as oil, and precious metals. Setting up shop in Calgary is part of our plan to be closer to our customers and grow our business.”

Photo credit: PRWeb/HC)