GOSHEN, Ind.--(BUSINESS WIRE)--Supreme today submitted a Part 573 Defect Information Report to the United States National Highway Traffic Safety Association (NHTSA) reporting a potential safety defect. According to the Part 573 report, because the marker lights on certain box trucks are mounted on composite corner caps, if an electrical short occurs in the light and the light overheats, the corner cap could ignite. Supreme will notify affected customers and direct them to take their vehicle to an approved service center for installation of an appropriate amperage in-line fuse and a warning decal at no charge to the customer. Supreme is prepared to mobilize on this campaign immediately.
Supreme has estimated its cost for the recall would be no more than $500,000. After expenses accrued by Supreme in the first fiscal quarter of 2016, Supreme estimates it will take a charge of not more than $250,000 in the second fiscal quarter of 2016 for costs of this recall campaign. On an after tax basis, the second quarter expense is expected to be not more than $168,000.
About Supreme Industries
Supreme Industries, Inc. (NYSE MKT:STS), is a nationwide manufacturer of truck bodies, trolleys and specialty vehicles produced to the specifications of its customers. The Company’s transportation equipment products are used by a wide variety of industrial, commercial and law enforcement customers.
Other than historical facts contained herein, the matters set forth in this news release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act, as amended, and reflect the view of management with respect to future events. When used in this report, words such as "believe," "expect," "anticipate," "estimate," "intend," "plan" and similar expressions, as they relate to Supreme or its plans or operations, identify forward-looking statements. Such forward-looking statements are based on assumptions made by, and information currently available to, management. Although management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that the expectations reflected in such forward-looking statements are reasonable, and it can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from such expectations include, without limitation, a change in the number of vehicles subject to a recall, changes in the costs of implementing the recall, actions by NHTSA, including fines and/or penalties, or limitations on the availability of materials used to implement the recall. Furthermore, Supreme can provide no assurance that any raw material cost increases can be passed on to its customers through implementation of price increases for Supreme's products. The forward-looking statements contained herein reflect the current view of management with respect to future events and are subject to those factors and other risks, uncertainties and assumptions relating to the operations, results of operations, cash flows and financial position of Supreme. Supreme assumes no obligation to update the forward-looking statements or to update the reasons actual results could differ from those contemplated by such forward-looking statements.