Article: Cavalier Homes Expects Loss for Third Quarter.(Financial report)

Company to Close One Manufacturing Line in Millen, Georgia

ADDISON, Ala. -- Cavalier Homes, Inc. (Amex: CAV) today announced that challenging market conditions continue to pressure the Company's revenue and gross margin in the third quarter. The expansion of gross margin is not expected to occur to the extent previously thought due to lower revenue and a lower production rate of homes for the Mississippi Emergency Management Agency (MEMA), which has been considerably more labor-intensive than expected. As a result of these and other factors discussed below, Cavalier does not expect to be profitable for the third quarter as previously anticipated.

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