exv99w1


		NEWS RELEASE

Skyline Corporation
2520 By-Pass Road
P.O. Box 743
Elkhart, Indiana 46515-0743
(574) 294-6521


Subject: FIRST QUARTER REPORT		Approved by: JAMES R. WEIGAND

ELKHART, INDIANA — OCTOBER 7, 2005

SKYLINE REPORTS FISCAL 2006 FIRST QUARTER RESULTS

Net earnings for the first quarter of Skyline Corporation’s 2006 fiscal year were $2,344,000, an increase from the $806,000 of the first quarter of fiscal 2005. On a per share basis, net earnings for the first quarter of fiscal 2006 were $0.28 versus $0.10 for the first quarter a year ago. Net earnings for fiscal 2006 include a gain on sale of vacant land of $0.03 per share.

Sales for the quarter which ended August 31, 2005 were $118,346,000, an increase from the $117,567,000 for the first quarter of fiscal 2005.

For Skyline’s manufactured housing group, sales for the first quarter of fiscal 2006 were $92,436,000 compared to $85,018,000 for the first quarter a year ago. Skyline’s RV group recorded sales of $25,910,000 for the first three months of fiscal 2006 compared to $32,549,000 recorded for the first quarter of fiscal 2005.

Skyline continues to maintain its traditionally strong balance sheet with no long-term debt and a healthy position in cash and temporary cash investments.

**************

Bringing America Home. Bringing America Fun.

SKYLINE CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATED STATEMENTS OF EARNINGS

(Dollars in thousands except per share)


	Three Months Ended
	August 31, (Unaudited)
	*2005*			2004
Sales	$	*118,346*		$	117,567

Earnings before income taxes		*3,721*			1,346
Provision for income taxes		*1,377*			540

Net earnings	$	*2,344*		$	806

Basic earnings per share	$	*.28*	*(A)*	$	.10

Weighted average common shares outstanding		*8,391,244*			8,391,244

(A) Includes an after-tax gain on sale of vacant land of $.03 per share.

SKYLINE CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)


	August 31, (Unaudited)
ASSETS	*2005*			2004
Cash and temporary cash investments	$	*143,163*		$	146,417
Accounts receivable		*27,903*			28,468
Inventories		*10,839*			11,698
Other current assets		*9,609*			8,444

Total Current Assets		*191,514*			195,027
Property, Plant and Equipment, net		*34,744*			37,429
Other Assets		*9,610*			8,809

	$	*235,868*		$	241,265

LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable, trade	$	*7,630*		$	8,243
Accrued liabilities		*25,869*			24,042
Income taxes payable		*1,363*			428

Total Current Liabilities		*34,862*			32,713

Other Deferred Liabilities		*10,669*			10,773

Common stock		*312*			312
Additional paid-in capital		*4,928*			4,928
Retained earnings		*250,841*			258,283
Treasury stock, at cost, 2,825,900 shares in 2005 and 2004		*(65,744*	)		(65,744	)

Total Shareholders’ Equity		*190,337*			197,779

	$	*235,868*		$	241,265