Spartan Motors (SPAR): +210% YTD Awarded Milestone Prototype Contract by USPS

Destiny A. Lopez  |

Spartan Motors (SPAR), an automotive company, continued its winning streak of positive developments with its latest announcement. In late September, the company was awarded a utilimaster prototype contract by the United States Postal Service. Per this milestone contract, the company’s Fleet Vehicles and Services business unit is to build fully functional prototypes for the Next Generation Delivery Vehicle Program.

"We are pleased to be among a select group of vehicle makers to win the USPS prototype award, further validating our focus on and investments in engineering, forward-looking technology and world-class manufacturing," said Daryl Adams, President and CEO of Spartan Motors. "We are approaching this opportunity with the goal of providing the USPS with both improved performance, operating efficiency, and improved cost effectiveness. We expect our NGDV protoypes will incorporate new technologies to better accommodate a diverse mail and package mix, enhance safety, improve service and reduce emissions. With our proprietary R&D process and manufacturing know-how, our vehicles and upfits will be customized to align with the USPS' universal service mandate to deliver the mail almost every day to every address."

Headquartered in Michigan, Spartan Motors custom engineers and manufacturers specialized motor vehicle chassis and bodies.


The company operates the following three segments:

  • Emergency Response Vehicles, which offers emergency response chassis and bodies.
  • Delivery and Service Vehicles, which offers walk-in vans for, among other uses, package delivery and bakery/snack delivery, along with commercial truck bodies and interior equipment up fitting.
  • Specialty Chassis and Vehicles, which offers motor home chassis and other specialty chassis.

Through these segments, according to the company’s official website, the company sells its products through a network of independent truck dealers to commercial vehicle dealers and leasing companies, as well as directly to end-users.

Furthermore, the company also revealed its increasing strength through recent numbers. In early August, the company released its Q2 2016 financial report. Along with, according to the official news release, a sales increased 12.2%, other highlights include an improved gross margin, net income growth, and a 111.2% increase in adjusted operating income.

"We are pleased with the operating results achieved for the quarter as we continue to show improvement and incremental, sequential quarterly progress in all three business segments," said Adams. "Our process improvement and lean initiatives introduced as part of our multi-year turnaround plan, together with a focused execution of our business plan, are generating operational efficiencies and driving increased profitability. Our employees have embraced this transformation, and, as a result of their contributions, we are pleased to report Spartan's strongest profitable quarter since the second quarter of 2009."

According to BarChart, Spartan Motors is listed among other company's that rank highest by YTD percent change. The company's YTD change is is +209.65%.

Thanks to a solid performance in Q2 and its recently awarded contract by the USPS, Spartan Motors is positioned to remain at the forefront of the specialty chassis and vehicle design, manufacturing and assembly sector. The investment community looks forward to future developments from the company.

To learn more about Spartan Motors, visit www.spartanmotors.com.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer.

Companies

Symbol Name Price Change % Volume
SPAR Spartan Motors Inc. 20.21 -0.06 -0.30 350,807 Trade

Comments

Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
GOOG

     
XOM

     
BRK.A

     
FB

     
JNJ

     
WFC

     
T

     
NFLX

     
TSLA

     
V

     
UNH

     
PG

     

World Economic Forum at Davos 2019 - Ben Yablon Executive VP Salt Lending

Matt Bird sits down with Ben Yablon - Executive VP of Salt Lending - at the World Economic Forum in Davos January 2019