The closing of two manufacturing plants and retail sales operations in three states contributed to Golden West Homes’ net income gain of $166,000 on sales of $18,183,000 during the first quarter ending Aug. 24, the Santa Ana-based company said Thursday.
Lawrence E. Wessel, chief financial officer, said that profitable operations at four of the mobile home manufacturer’s remaining plants also helped in the gain, which compares with a net loss of $318,000 on sales of $16,842,000 in the first quarter of fiscal 1985. The company had recorded seven consecutive quarterly losses before the profit in the latest quarter 1986.
Golden West “trimmed overhead” during fiscal 1985 by closing plants in Arizona and Riverside as well as sales operations in Oregon, Washington and Arizona, Wessel said. He also said that his company had recently completed a long-term debt placement totaling $4.7 million, which will be used primarily to reduce the company’s line of credit.
The company lost $2 million in its final quarter of fiscal year 1985 and $9.3 million for that entire year.
Wessel declined to forecast Golden West’s performance in subsequent quarters of this fiscal year, but said the over-capacity condition within the mobile home-building industry remains and could affect those quarters.