Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from Ed Aaron – RBC Capital Markets.
Ed Aaron – RBC Capital Markets
First of all, it looks like you didn’t really maybe get your full share of the industry’s wholesale shipments this quarter, particularly in class A.
The class A numbers that you reported down I think over 50% on a units basis which is far worse than the industry and I realize that your retail share might be down a little bit, but it’s still kind of hard to reconcile and I was wondering whether you think it’s fair to say that your competitors are maybe overproducing in this environment while you’re maybe being more disciplined about what you’re putting into the channel.
Bob Olson
I don’t know if they’re overproducing but I think it’s a case where we know that our dealers that we talk to are still reducing their inventories. And I think you’ve got another dynamic out there that we’ve had several competitors go out of business the last few months. And I think you’ve got some of those products that are out there hitting the channel as well.
One of the things that we have watched very closely and you can see that by what we reduced our finished goods by, we are being very, very critical on ourselves not to build open inventory because we do feel that until this thing turns around and we get some good economic indicators out there that dealers are going to continue to lower their inventories.
And we think that they’re just being very, very conservative right now as far as ordering product. And we know from us for sure and we’re assuming that it’s probably from some of the other manufacturers as well.
Ed Aaron – RBC Capital Markets
Last quarter you mentioned with your inventories that I think you were targeting a number of $100 million or so or maybe even somewhat less than that by the end of the year and I was wondering if you were still on track for that?
Sarah Nielsen
Yes that is still our goal and it looks to be a feasible goal based on what we see now to be in the $100 million range by the end of the fiscal year.
Ed Aaron – RBC Capital Markets
You mentioned earlier about the companies that survive the downturn are going to be well positioned for the next cycle and just kind of wondering what you’re hearing out there in terms of, I mean we know of a few smaller companies that have kind of gone by the wayside here but I’m wondering what you’re hearing out there as far as anything more that maybe we haven’t heard about yet but you think might be coming.
- To read the full transcript on Seeking Alpha, click here »
