Shuttle Buses No Longer Supreme
Supreme Industries, Inc., the Goshen, Ind.-headquartered manufacturer of specialized commercial vehicles including truck bodies, trolleys, armored and specialty vehicles, has announced that it intends to divest its shuttle bus business.
The company said its 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. Shuttle bus products currently represent less than 12% of Supreme’s consolidated sales and had an adverse impact on earnings in 2013. The divestiture is intended to further 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. Furthermore, to avoid disruptions for our shuttle bus customers, we plan to assist the future owners with a swift and orderly transition.”
Supreme has vertically integrated operations, with five manufacturing facilities and three service and distribution centers positioned at strategic locations to serve its major geographic markets. The company posted revenues of $286 million in 2012.