American commercial vehicles manufacturer Supreme Industries is set to sell its shuttle-bus business.
The company manufactures truck bodies to the specifications of its customers. It also manufactures armored vehicles and trolleys.
Shuttle bus products of the company currently represent less than 12% of its consolidated sales. The divestiture is intended to further expand profit margins on a consolidated basis.
President and chief executive officer Mark Weber said that as a proportion of revenue mix, bus products have represented a declining percentage of their sales and shuttle buses, in particular, have failed to meet profitability objectives.
"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," Weber added.
"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."
