----

----

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**Form      10-Q**

**QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934**

**o**
** **
**      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE      ACT      OF 1934**

|   |   | **COACHMEN                  INDUSTRIES, INC.**                                             |   |   |
|--------|--------|--------------------------------------------------------------------------------------------|--------|--------|
|   |   | *(Exact                  name of registrant as specified in                  its charter)* |   |   |

|   | **Indiana**                                               |   | **35-1101097**                                     |   |
|--------|-----------------------------------------------------------|--------|----------------------------------------------------|--------|
|   | *(State                of incorporation or organization*) |   | *(IRS                Employer Identification No.)* |   |

|   | **2831                Dexter Drive, Elkhart, Indiana**    |   | **46514**                   |   |
|--------|-----------------------------------------------------------|--------|-----------------------------|--------|
|   | *(Address                of principal executive offices)* |   | *(Zip                Code)* |   |

|   | Registrant's                telephone number, including area code |   | **(574)                262-0123** |   |
|--------|-------------------------------------------------------------------|--------|-----------------------------------|--------|

| Large                accelerated filer o |   | Accelerated                filer x |   | Non-accelerated                filer o |
|-----------------------------------------------|--------|-----------------------------------------|--------|---------------------------------------------|

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----

| **FORM                10-Q**                                                                                              |
|---------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                      |   |
|                                                                                                                      |   |
| **INDEX**                                                                                                                 |
|                                                                                                                      |   |
| **Part                I. Financial Information**                                                                          | **Page** |
|                                                                                                                      |   |
| Financial                Statements:                                                                                      |   |
| Consolidated                Balance Sheets at March 31, 2006 and                December 31, 2005                         | 3 |
|                                                                                                                      |   |
| Consolidated                Statements of Operations for                the three months ended March 31, 2006 and 2005    | 4 |
|                                                                                                                      |   |
| Consolidated                Statements of Cash Flows for the                three months ended March 31, 2006 and 2005    | 5 |
|                                                                                                                      |   |
| Notes                to Consolidated Financial                Statements                                                  | 6-15 |
|                                                                                                                      |   |
| Management’s                Discussion and Analysis of Financial Condition                and Results of Operations | 16-21 |
|                                                                                                                      |   |
| Quantitative                and Qualitative                Disclosures About Market Risk                                  | 22 |
|                                                                                                                      |   |
| Controls                and Procedures                                                                                    | 22 |
|                                                                                                                      |   |
| **Part                II. Other Information**                                                                             |   |
|                                                                                                                      |   |
| Item                1. Legal Proceedings                                                                                  | 23 |
|                                                                                                                      |   |
| Item                6. Exhibits                                                                                           | 23 |
|                                                                                                                      |   |
| Signatures                                                                                                                | 24 |
|                                                                                                                      |   |
| Index                to Exhibits                                                                                          | 25 |

----

Index

**Coachmen      Industries, Inc. and      Subsidiaries**

**Consolidated      Balance Sheets**

|                                                                                                                                                                         |   |   | March                31, |   |   | December                31, |    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------------------|--------|--------|-----------------------------|---------|
| **Assets**                                                                                                                                                                   |   |   | 2006                     |   |   | 2005                        |    |
| CURRENT                ASSETS                                                                                                                                                |   |   |                     |   |   |                        |    |
| Cash                and cash equivalents                                                                                                                                     |   | $      | 8,906                    |   | $      | 2,780                       |    |
| Trade                receivables, less allowance for doubtful receivables 2006 - $1,283                and 2005 - $1,240                                                     |   |   | 39,669                   |   |   | 47,174                      |    |
| Other                receivables                                                                                                                                             |   |   | 2,695                    |   |   | 1,969                       |    |
| Refundable                income taxes                                                                                                                                       |   |   | 9,750                    |   |   | 10,284                      |    |
| Inventories                                                                                                                                                                  |   |   | 114,980                  |   |   | 121,304                     |    |
| Prepaid                expenses and other                                                                                                                                    |   |   | 3,281                    |   |   | 3,992                       |    |
| Deferred                income taxes                                                                                                                                         |   |   | 11,133                   |   |   | 11,421                      |    |
| Total                current assets                                                                                                                                          |   |   | 190,414                  |   |   | 198,924                     |    |
| Property,                plant and equipment**,**                net                                                                                                         |   |   | 60,840                   |   |   | 67,581                      |    |
| Notes                receivable                                                                                                                                              |   |   | 7,219                    |   |   | 2,493                       |    |
| Goodwill                                                                                                                                                                     |   |   | 16,865                   |   |   | 17,383                      |    |
| Cash                value of life insurance, net of loans                                                                                                                    |   |   | 30,798                   |   |   | 28,880                      |    |
| Deferred                income taxes                                                                                                                                         |   |   | 2,913                    |   |   | 4,279                       |    |
| Assets                held for sale                                                                                                                                          |   |   | 2,666                    |   |   | 291                         |    |
| Other                                                                                                                                                                        |   |   | 2,762                    |   |   | 2,985                       |    |
| TOTAL                ASSETS                                                                                                                                                  |   | $      | 314,477                  |   | $      | 322,816                     |    |
|                                                                                                                                                                         |   |   |                     |   |   |                        |    |
| **Liabilities                and Shareholders' Equity**                                                                                                                      |   |   |                     |   |   |                        |    |
| CURRENT                LIABILITIES                                                                                                                                           |   |   |                     |   |   |                        |    |
| Short-term                borrowings                                                                                                                                         |   | $      | -                        |   | $      | 12,276                      |    |
| Accounts                payable, trade                                                                                                                                       |   |   | 41,106                   |   |   | 31,658                      |    |
| Accrued                income taxes                                                                                                                                          |   |   | 801                      |   |   | 533                         |    |
| Accrued                expenses and other liabilities                                                                                                                        |   |   | 47,644                   |   |   | 54,856                      |    |
| Floorplan                notes payable                                                                                                                                       |   |   | 5,068                    |   |   | 4,361                       |    |
| Current                maturities of long-term debt                                                                                                                          |   |   | 1,818                    |   |   | 2,223                       |    |
| Total                current liabilities                                                                                                                                     |   |   | 96,437                   |   |   | 105,907                     |    |
| Long-term                debt                                                                                                                                                |   |   | 11,561                   |   |   | 12,913                      |    |
| Postretirement                deferred compensation benefits                                                                                                                 |   |   | 10,488                   |   |   | 10,182                      |    |
| Other                                                                                                                                                                        |   |   | -                        |   |   | 11                          |    |
| Total                liabilities                                                                                                                                             |   |   | 118,486                  |   |   | 129,013                     |    |
|                                                                                                                                                                         |   |   |                     |   |   |                        |    |
| COMMITMENTS                AND CONTINGENCIES** **(see                Note 10)                                                                                           |   |   |                     |   |   |                        |    |
|                                                                                                                                                                         |   |   |                     |   |   |                        |         |
| SHAREHOLDERS'                EQUITY                                                                                                                                          |   |   |                     |   |   |                        |    |
| Common                shares, without par value: authorized 60,000 shares; issued 2006                -                21,140                shares and 2005 - 21,134 shares |   |   | 92,224                   |   |   | 92,164                      |    |
| Additional                paid-in capital                                                                                                                                    |   |   | 7,247                    |   |   | 6,465                       |    |
| Unearned                compensation                                                                                                                                         |   |   |  -                  |   |   |  (142                  | )  |
| Accumulated                other comprehensive income (loss)                                                                                                                 |   |   | 12                       |   |   | (6                          | )  |
| Retained                earnings                                                                                                                                             |   |   | 156,219                  |   |   | 154,246                     |    |
| Treasury                shares, at cost, 2006 - 5,512                shares and 2005 - 5,375 shares                                                                          |   |   | (59,711                  | )      |   | (58,924                     | )       |
| Total                shareholders' equity                                                                                                                                    |   |   | 195,991                  |   |   | 193,803                     |    |
|                                                                                                                                                                         |   |   |                     |   |   |                        |    |
| TOTAL                LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                    |   | $      | 314,477                  |   | $      | 322,816                     |    |

*See      Notes to Consolidated Financial      Statements.*

----

Index

**Coachmen      Industries, Inc. and      Subsidiaries**

**Consolidated      Statements of Operations**

|                                                                                                                                                           |   | Three                  Months Ended March 31, |          |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|---------------|
|                                                                                                                                                           |   | 2006                                          |          | 2005 |   |
|                                                                                                                                                           |   |                                          |          |   |   |   |   |
| Net                sales                                                                                                                                       |   | $                                        | 162,554       |   | $  | 192,249 |   |
| Cost                of sales                                                                                                                                   |   |                                          |  147,912 |   |   |  173,464 |   |
| Gross                  profit                                                                                                                                  |   |                                          |  14,642  |   |   |  18,785 |   |
| Operating                expenses:                                                                                                                        |   |                                          |          |   |   |   |   |
| Delivery                                                                                                                                                       |   |                                          |  8,229   |   |   |  8,121 |   |
| Selling                                                                                                                                                        |   |                                          |  5,180   |   |   |  7,294 |   |
| General                  and administrative                                                                                                                    |   |                                          |  2,850   |   |   |  4,782 |   |
| Gain                  on sale of assets, net                                                                                                                   |   |                                          |  (2,677  | )  |   |  (3 | )  |
|                                                                                                                                                           |   |                                          |  13,582  |   |   |  20,194 |   |
| Operating                  income (loss)                                                                                                                       |   |                                          |  1,060   |   |   |  (1,409 | )  |
| Nonoperating                (income) expense:                                                                                                             |   |                                          |          |   |   |   |   |
|  Interest                  expense                                                                                                                        |   |                                          |  968     |   |   |  893 |   |
|  Investment                  income                                                                                                                       |   |                                          |  (362    | )  |   |  (817 | )  |
|  Other                  (income) expense, net                                                                                                             |   |                                          |  (164    | )  |   |  (68 | )  |
|                                                                                                                                                           |   |                                          |  442     |   |   |  8 |   |
|  Income                  (loss) from continuing operations before income taxes                                                                            |   |                                          |  618     |   |   |  (1,417 | )  |
| Income                taxes (credit)                                                                                                                      |   |                                          |  214     |   |   |  (464 | )  |
| Net                income (loss) from continuing operations                                                                                               |   |                                          |  404     |   |   |  (953 | )  |
|                                                                                                                                                           |   |                                          |          |   |   |   |   |
| Discontinued                operations                                                                                                                    |   |                                          |          |   |   |   |   |
|  Loss                  from operations of discontinued entities (net of tax credits of                  $(175) and                  $(301), respectively) |   |                                          |  (329    | )  |   |  (433 | )  |
|  Gain                  on sale of assets of discontinued entities (net of taxes of $1,510                  in                  2006)                      |   |                                          |  2,835   |   |   |  - |   |
|  Income                  (loss) from discontinued operations                                                                                              |   |                                          |  2,506   |   |   |  (433 | )  |
| Net                  income (loss)                                                                                                                             |   | $                                        |  2,910   |   | $  | (1,386 | )  |
|                                                                                                                                                           |   |                                          |          |   |   |   |   |
| Earnings (loss)                per share - Basic                                                                                                     |   |                                          |          |   |   |   |   |
| Continuing                  operations                                                                                                                         |   | $                                        |  .03     |   | $  |  (.06 | )  |
| Discontinued                  operations                                                                                                                       |   |                                          |  .16     |   |   |  (.03 | )  |
| Net                  earnings (loss) per share                                                                                                                 |   |                                          |  .19     |   |   |  (.09 | )  |
| Earnings                (loss) per share - Diluted                                                                                                        |   |                                          |          |   |   |   |   |
| Continuing                  operations                                                                                                                         |   |                                          |  .03     |   |   |  (.06 | )  |
| Discontinued                  operations                                                                                                                       |   |                                          |  .16     |   |   |  (.03 | )  |
| Net                  earnings (loss) per share                                                                                                                 |   |                                          |  .19     |   |   |  (.09 | )  |
|                                                                                                                                                           |   |                                          |          |   |   |   |   |
| Number                of common shares used in the computation of earnings (loss) per                share:                                               |   |                                          |          |   |   |   |   |
| Basic                                                                                                                                                          |   |                                          |  15,593  |   |   |  15,526 |   |
| Diluted                                                                                                                                                        |   |                                          |  15,650  |   |   |  15,526 |   |
|                                                                                                                                                           |   |                                          |          |   |   |   |   |
| Cash                dividends declared per common share                                                                                                   |   | $                                        | .06      |   | $  |  .06 |   |

*See      Notes to Consolidated Financial      Statements.*

----

Index

**Coachmen      Industries, Inc. and      Subsidiaries**

**Consolidated      Statements of Cash Flows **

|                                                                                                                                     |   | Three                Months Ended March 31, |
|------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|
|                                                                                                                                     |   | 2006                                        |   | 2005 |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES:                                                                                     |   |                                        |   |   |   |   |   |
| Net                income (loss)                                                                                                         |   | $                                           | 2,910 |   | $ | (1,386 | )  |
| Adjustments                to reconcile net income (loss) to net cash provided by operating                activities:                   |   |                                        |   |   |   |   |   |
| Depreciation                                                                                                                             |   |                                        | 1,669 |   |   | 2,232 |   |
| Provision                for doubtful receivables, net of recoveries                                                                     |   |                                        | 148 |   |   | 274 |   |
| Net                realized and unrealized (gains)/losses on marketable securities and                derivatives                        |   |                                        | 18 |   |   | (285 | )  |
| (Gain)                loss on sale of properties and other assets, net                                                                   |   |                                        | (7,022 | ) |   | (4 | ) |
| Increase                in cash surrender value of life insurance policies                                                               |   |                                        | (584 | ) |   | (425 | ) |
| Deferred                income tax provision (benefit)                                                                                   |   |                                        | 1,654 |   |   | (45 | ) |
| Other                                                                                                                                    |   |                                        | 407 |   |   | (590 | )  |
| Changes                in certain assets and liabilities, net of effects of acquisitions                and                dispositions: |   |                                        |   |   |   |   |   |
| Trade                receivables                                                                                                         |   |                                        | 1,880 |   |   | (4,833 | ) |
| Inventories                                                                                                                              |   |                                        | (5,842 | ) |   | (9,888 | ) |
| Prepaid                expenses and other                                                                                                |   |                                        | 94 |   |   | 772 |   |
| Accounts                payable, trade                                                                                                   |   |                                        | 10,958 |   |   | 16,434 |   |
| Income                taxes - accrued and refundable                                                                                     |   |                                        | 802 |   |   | (3,360 | )  |
| Accrued                expenses and other liabilities                                                                                    |   |                                        | (1,727 | ) |   | 5,688 |   |
| Net                cash provided by operating activities                                                                                 |   |                                        | 5,365 |   |   | 4,584 |   |
| CASH                FLOWS FROM INVESTING ACTIVITIES:                                                                                     |   |                                        |   |   |   |   |   |
| Proceeds                from sales of marketable securities                                                                              |   |                                        | - |   |   | 1,399 |   |
| Proceeds                from sale of properties and other assets                                                                         |   |                                        | 17,870 |   |   | 8 |   |
| Investments                in marketable securities                                                                                      |   |                                        | (1,334 | ) |   | (1,457 | ) |
| Purchases                of property and equipment                                                                                       |   |                                        | (1,785 | ) |   | (2,028 | ) |
| Other                                                                                                                                    |   |                                        | 188 |   |   | (270 | ) |
| Net                cash provided by (used in) investing activities                                                                       |   |                                        | 14,939 |   |   | (2,348 | ) |
| CASH                FLOWS FROM FINANCING ACTIVITIES:                                                                                     |   |                                        |   |   |   |   |   |
| Proceeds                from short-term borrowings                                                                                       |   |                                        | 7,070 |   |   | 232 |   |
| Payments                of short-term borrowings                                                                                         |   |                                        | (18,639 | ) |   | (10,206 | ) |
| Proceeds                from long-term debt                                                                                              |   |                                        | 255 |   |   | - |   |
| Payments                of long-term debt                                                                                                |   |                                        | (2,012 | ) |   | (274 | ) |
| Issuance                of common shares under stock incentive plans                                                                     |   |                                        | 85 |   |   | 91 |   |
| Cash                dividends paid                                                                                                       |   |                                        | (937 | ) |   | (943 | ) |
| Other                                                                                                                                    |   |                                        | - |   |   | 35 |   |
| Net                cash used in financing activities                                                                                |   |                                        | (14,178 | ) |   | (11,065 | )  |
| Increase                (decrease) in cash and cash equivalents                                                                          |   |                                        | 6,126 |   |   | (8,829 | )  |
| CASH                AND CASH EQUIVALENTS                                                                                                 |   |                                        |   |   |   |   |   |
| Beginning                of period                                                                                                       |   |                                        | 2,780 |   |   | 14,992 |   |
| End                of period                                                                                                             |   | $                                           | 8,906 |   | $ | 6,163 |   |
|                                                                                                                                     |   |                                        |   |   |   |   |   |
| Supplemental              disclosures of cash flow information:                                                                     |   |                                        |   |   |   |   |   |
| Operating                cash received during the quarter related to insurance                settlement                                 |   | $                                      |  2,875 |   | $  |  2,213 |   |

*See      Notes to Consolidated Financial      Statements.*

----

Index

**Coachmen      Industries, Inc. and Subsidiaries**

**Notes      to Consolidated Financial Statements**

**1.         BASIS OF PRESENTATION.**

**Reclassifications      - **

**2.         SEGMENT INFORMATION.**

Note 9

|                                   |   | Three                Months Ended March 31, |    |
|----------------------------------------|--------|---------------------------------------------|---------|
|                                   |   | 2006                                        |    | 2005 |   |
| Net                sales:              |   |                                        |    |   |   |   |   |
| Recreational                vehicles   |   | $                                           | 119,854 |   | $ | 153,695 |   |
| Housing                and building    |   |                                        | 42,700  |   |   | 38,554 |   |
|                                   |   |                                        |    |   |   |   |   |
| Consolidated                total      |   | $                                           | 162,554 |   | $ | 192,249 |   |
|                                   |   |                                        |    |   |   |   |   |
| Gross                profit            |   |                                        |    |   |   |   |   |
| Recreational                vehicles   |   | $                                           | 4,980   |   | $ | 11,154 |   |
| Housing                and building    |   |                                        | 9,662   |   |   | 7,564 |   |
| Other                reconciling items |   |                                        | -       |   |   | 67 |   |
| Total                                  |   | $                                           | 14,642  |   | $ | 18,785 |   |
|                                   |   |                                        |    |   |   |   |   |
| Operating                expenses      |   |                                        |    |   |   |   |   |
| Recreational                vehicles   |   | $                                           | 7,327   |   | $ | 12,853 |   |
| Housing                and building    |   |                                        | 9,555   |   |   | 10,705 |   |
| Other                reconciling items |   |                                        | (3,300  | ) |   | (3,364 | )  |
| Total                                  |   | $                                           | 13,582  |   | $ | 20,194 |   |
|                                   |   |                                        |    |   |   |   |   |

----

Index

|                                                            |   | Three                Months Ended March 31,  |                     |
|-----------------------------------------------------------------|--------|---------------------------------------------------|--------------------------|
|                                                            |   | 2006                                         |                     | 2005  |   |
| Operating                income/(loss)                          |   |                                              |                     |   |   |   |   |
| Recreational                vehicles                            |   | $                                                 | (2,347                   | ) | $ | (1,699 | )  |
| Housing                and building                             |   |                                              | 107                      |   |   | (3,141 | )  |
| Other                reconciling items                          |   |                                              | 3,300                    |   |   | 3,431 |   |
| Total                                                           |   | $                                                 | 1,060                    |   | $ | (1,409 | )  |
|                                                            |   |                                              |                     |   |   |   |   |
| Pre-tax                income/(loss) from continuing operations |   |                                              |                     |   |   |   |   |
| Recreational                vehicles                            |   | $                                                 | (2,668                   | ) | $ | (1,863 | )  |
| Housing                and building                             |   |                                              | 142                      |   |   | (3,031 | )  |
| Other                reconciling items                          |   |                                              | 3,144                    |   |   | 3,477 |   |
| Total                                                           |   | $                                                 | 618                      |   | $ | (1,417 | )  |
|                                                            |   |                                              |                     |   |   |   |   |
|                                                            |   |                                              |                     |   |   |   |   |
|                                                            |   |                                              | March                31, |   |   | December                31, |   |
| Total                assets                                     |   |                                              | 2006                     |   |   | 2005 |   |
| Recreational                vehicles                            |   | $                                                 | 152,483                  |   | $ | 152,501 |   |
| Housing                and building                             |   |                                              | 71,090                   |   |   | 83,338 |   |
| Other                reconciling items                          |   |                                              | 90,904                   |   |   | 86,977 |   |
| Total                                                           |   | $                                                 | 314,477                  |   | $ | 322,816 |   |

**3.         INVENTORIES.**

|                                 |   | March                31, |    | December                31, |   |
|--------------------------------------|--------|--------------------------|---------|-----------------------------|--------|
|                                 |   | 2006                     |    | 2005                        |   |
| Raw                materials         |   |                     |    |                        |   |   |   |
| Recreational                vehicles |   | $                        | 20,602  |                        | $      | 19,770 |   |
| Housing                and building  |   |                     | 8,430   |                        |   | 13,643 |   |
| Total                                |   |                     | 29,032  |                        |   | 33,413 |   |
|                                 |   |                     |    |                        |   |   |   |
| Work                in process       |   |                     |    |                        |   |   |   |
| Recreational                vehicle  |   |                     | 22,050  |                        |   | 15,515 |   |
| Housing                and building  |   |                     | 4,389   |                        |   | 5,280 |   |
| Total                                |   |                     | 26,439  |                        |   | 20,795 |   |
|                                 |   |                     |    |                        |   |   |   |
| Improved                lots         |   |                     |    |                        |   |   |   |
| Housing                and building  |   |                     | 249     |                        |   | 261 |   |
| Total                                |   |                     | 249     |                        |   | 261 |   |
|                                 |   |                     |    |                        |   |   |   |
| Finished                goods        |   |                     |    |                        |   |   |   |
| Recreational                vehicle  |   |                     | 45,500  |                        |   | 48,935 |   |
| Housing                and building  |   |                     | 13,760  |                        |   | 17,900 |   |
| Total                                |   |                     | 59,260  |                        |   | 66,835 |   |
|                                 |   |                     |    |                        |   |   |   |
| Total                                |   | $                        | 114,980 |                        | $      | 121,304 |   |

----

Index

**4.         PROPERTY, PLANT AND EQUIPMENT.**

|                                              |   | March                31,2006 |    | December                31,2005 |   |
|---------------------------------------------------|--------|------------------------------|---------|---------------------------------|--------|
|                                              |   |                         |    |                            |   |
| Land                and improvements              |   | $                            | 12,032  |                            | $      | 13,255 |   |
| Buildings                and improvements         |   |                         | 62,943  |                            |   | 68,007 |   |
| Machinery                and equipment            |   |                         | 23,688  |                            |   | 31,468 |   |
| Transportation                equipment           |   |                         | 15,728  |                            |   | 16,279 |   |
| Office                furniture and fixtures      |   |                         | 17,800  |                            |   | 19,080 |   |
|                                              |   |                         |    |                            |   |   |   |
| Total                                             |   |                         | 132,191 |                            |   | 148,089 |   |
| Less,                accumulated depreciation     |   |                         | 71,351  |                            |   | 80,508 |   |
|                                              |   |                         |    |                            |   |   |   |
| Property,                plant and equipment, net |   | $                            | 60,840  |                            | $      | 67,581 |   |

**5.         ACCRUED EXPENSES AND OTHER LIABILITIES.**

|                                                                                                                                                                |   | March                31,2006 |        | December                31,2005 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|-------------|---------------------------------|--------|
|                                                                                                                                                                |   |                         |        |                            |   |
| Wages,                salaries, bonuses and commissions                                                                                                             |   | $                            | 2,626       |                            | $      | 3,156 |   |
| Dealer                incentives, including volume bonuses, dealer trips, interest                reimbursement, co-op                advertising and other rebates |   |                         | 6,000       |                            |   | 4,284 |   |
| Warranty                                                                                                                                                            |   |                         | 16,605      |                            |   | 20,005 |   |
| Insurance-products                and general liability, workers compensation, group                health and other                                                |   |                         | 7,769       |                            |   | 6,833 |   |
| Customer                deposits and unearned revenues                                                                                                              |   |                         | 5,039       |                            |   | 10,029 |   |
| Litigation                                                                                                                                                          |   |                         |  3,877 |                            |   |  3,740 |   |
| Interest                                                                                                                                                            |   |                         |  1,274 |                            |   |  1,980 |   |
| Sales                and property taxes                                                                                                                             |   |                         |  1,806 |                            |   |  1,948 |   |
| Other                current liabilities                                                                                                                            |   |                         | 2,648       |                            |   | 2,881 |   |
|                                                                                                                                                                |   |                         |        |                            |   |   |   |
| Total                                                                                                                                                               |   | $                            | 47,644      |                            | $      | 54,856 |   |

----

Index

|                                                                                                                   |   | Three                Months Ended March 31, |   |
|------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|--------|
|                                                                                                                   |   | 2006                                        |   | 2005 |   |
|                                                                                                                   |   |                                        |   |   |   |
| Balance                of accrued warranty at beginning of period                                                      |   | $                                           | 20,005 |   | $ | 10,140 |   |
|                                                                                                                   |   |                                        |   |   |   |   |   |
| Warranties                issued during the period and changes in liability for pre-existing                warranties |   |                                        | 6,536  |   |   | 5,276 |   |
|                                                                                                                   |   |                                        |   |   |   |   |   |
| Settlements                made during the period                                                                      |   |                                        | (9,936 | ) |   | (5,100 | ) |
|                                                                                                                   |   |                                        |   |   |   |   |   |
| Balance                of accrued warranty at March 31                                                                 |   | $                                           | 16,605 |   | $ | 10,316 |   |

**6.         COMPREHENSIVE INCOME (LOSS).**

|                                                                       |   | Three                Months Ended March 31, |   |
|----------------------------------------------------------------------------|--------|---------------------------------------------|--------|
|                                                                       |   |  2006                                  |   |  2005 |   |
|                                                                       |   |                                        |   |   |   |   |   |
| Net                income (loss)                                           |   | $                                           | 2,910  |   | $ | (1,386 | ) |
| Unrealized                losses on securities held for sale, net of taxes |   |                                        | -      |   |   | (131 | ) |
| Unrealized                gains (losses) on cash flow hedges, net of taxes |   |                                        | 18     |   |   | 59 |   |
|                                                                       |   |                                        |   |   |   |   |   |
| Comprehensive                income (loss)                                 |   | $                                           | 2,928  |   | $ | (1,458 | ) |

**7.         EARNINGS PER SHARE. **

|                                                                        |   | Three                Months Ended March 31, |
|-----------------------------------------------------------------------------|--------|---------------------------------------------|
|                                                                        |   | 2006                                        |   | 2005 |   |
| Numerator:                                                                  |   |                                        |   |   |   |   |   |
| Net                income (loss) available to common stockholders           |   | $                                           | 2,910 |   | $ | (1,386 | )  |
| Denominator:                                                                |   |                                        |   |   |   |   |   |
| Number                of shares outstanding, end of period:                 |   |                                        |   |   |   |   |   |
| Weighted                average number of common shares used in basic EPS   |   |                                        | 15,593 |   |   | 15,526 |   |
| Effect                of dilutive securities                                |   |                                        |  57 |   |   |  - |   |
| Weighted                average number of common shares used in diluted EPS |   |                                        | 15,650 |   |   | 15,526 |   |

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Index

**8.   INCOME      TAXES.**

**9.**  **RESTRUCTURING CHARGES AND DISCONTINUED OPERATIONS.**

**Housing      and Building Segment**

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Index

|                                          |   |   |   | 2005   |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|
|                                          |   |   |   |   |   |
| Cash                                          |   |   |   |   | $      | 242 |   |
| Accounts                and other receivables |   |   |   |   |   | 4,401 |   |
| Prepaid                Expenses               |   |   |   |   |   | 510 |   |
| Inventories                                   |   |   |   |   |   | 10,423 |   |
| Other                long-term assets         |   |   |   |   |   | 124 |   |
| Fixed                assets                   |   |   |   |   |   | 34 |   |
| Accounts                payable               |   |   |   |   |   | (1,777 | ) |
| Other                current liabilities      |   |   |   |   |   | (5,341 | ) |
|                                          |   |   |   |   |   |   |   |
| Net                assets held for sale       |   |   |   |   | $      | 8,616 |   |

**Recreational      Vehicle Segment**

|                                          |   |   |   | 2005   |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|
|                                          |   |   |   |   |   |
| Accounts                and other receivables |   |   |   |   | $      | 781 |   |
| Prepaid                expenses               |   |   |   |   |   | 51 |   |
| Inventories                                   |   |   |   |   |   | 909 |   |
| Other                long-term assets         |   |   |   |   |   | 437 |   |
| Fixed                assets                   |   |   |   |   |   | 4,144 |   |
| Accounts                payable               |   |   |   |   |   | (116 | ) |
| Other                current liabilities      |   |   |   |   |   | (495 | ) |
|                                          |   |   |   |   |   |   |   |
| Net                assets held for sale  |   |   |   |   | $      | 5,711 |   |

----

Index

**10.       COMMITMENTS AND CONTINGENCIES. **

**Obligation      to Purchase Consigned Inventories **

**Repurchase      Agreements**

**Corporate      Guarantees**

----

Index

**Financing      Obligation**

**Litigation      **

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Index

**11.       STOCK-BASED COMPENSATION. **

*Accounting      for Stock Issued to Employees*
*Accounting      for Stock-Based Compensation*
*Share-Based      Payment*

*Accounting      for Stock Issued to Employees*
*Accounting      for Stock-Based Compensation*
*Accounting      for Stock-Based Compensation — Transition and Disclosure*

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Index

|                                                                                                                                                                             |   |                    | Three                Months Ended |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|-----------------------------------|
|                                                                                                                                                                             |   |                         | March                31, 2005     |
|                                                                                                                                                                             |   |                         |                              |   |   |   |
| Net                loss, as reported                                                                                                                                        |   |                         |                              | $ | (1,386 | ) |
| Add:                stock-based compensation expense under variable plan included in                reporting                net income, net of taxes                            |   |                         |                                   |   | (489 | ) |
| Deduct:                total stock-based compensation expense determined under fair value                based                method for all awards, net                of taxes |   |                         |                                   |   | 291 |   |
| Pro                forma net income (loss)                                                                                                                                       |   |                         |                              | $ | (1,584 | ) |
|                                                                                                                                                                             |   |                         |                                   |   |  |   |
| Earnings                per share:                                                                                                                                               |   |                         |                                   |   |  |   |
| Basic                - as reported                                                                                                                                               |   |                         |                              | $ | (0.09 | ) |
| Basic                - pro forma                                                                                                                                                 |   |                         |                              | $ | (0.10 | ) |
|                                                                                                                                                                             |   |                         |                                   |   |  |   |
| Diluted                - as reported                                                                                                                                             |   |                         |                              | $ | (0.09 | ) |
| Diluted                - pro forma                                                                                                                                               |   |                         |                              | $ | (0.10 | ) |

----

Index

**Coachmen      Industries, Inc. and Subsidiaries**

**Management’s      Discussion and Analysis of**

**Financial      Condition and Results of Operations**

|                                                                       |   |   |                                         |   |   |
|---------------------------------------------------------------------------------|--------|--------|----------------------------------------------|--------|--------|
|                                                                            |   |   | Comparison                of Three Months    |   |
|                                                                            |   |   | Ended                March 31, 2006 and 2005 |   |
|                                                                            |   |   | Increases                (Decreases)         |   |
|                                                                            |   |   | Amount                                       |   |   | Percentage |   |
|                                                                            |   |   |                                         |   |   |   |   |
| Net                sales                                                   |   | $      | (29,695                                      | )      |   | (15.4 | )% |
|                                                                            |   |   |                                         |   |   |   |   |
| Cost                of sales                                               |   |   | (25,552                                      | )      |   | (14.7 | ) |
|                                                                            |   |   |                                         |   |   |   |   |
| Delivery expenses                                                     |   |   | 108                                          |   |   | 1.3 |   |
|                                                                            |   |   |                                         |   |   |   |   |
| Selling                expenses                                            |   |   | (2,114                                       | )      |   | (29.0 | ) |
|                                                                            |   |   |                                         |   |   |   |   |
| General                and administrative expenses                         |   |   | (1,932                                       | )      |   | (40.4 |  ) |
|                                                                            |   |   |                                         |   |   |   |   |
| Gain                on sale of assets, net                                 |   |   | 2,674                                        |   |   | n/m |   |
|                                                                            |   |   |                                         |   |   |   |   |
| Interest                expense                                            |   |   | 75                                           |   |   | 8.4 |   |
|                                                                            |   |   |                                         |   |   |   |   |
| Investment                income                                           |   |   | (455                                         | )      |   | (55.7 | ) |
|                                                                            |   |   |                                         |   |   |   |   |
| Other                income, net                                           |   |   | 96                                           |   |   | n/m |   |
|                                                                            |   |   |                                         |   |   |   |   |
| Income from                continuing operations before income taxes  |   |   | 2,035                                        |   |   | 143.6 |   |
|                                                                            |   |   |                                         |   |   |   |   |
| Income                taxes                                                |   |   | 678                                          |   |   | 146.1 |   |
|                                                                            |   |   |                                         |   |   |   |   |
| Net                income from continuing operations                       |   |   | 1,357                                        |   |   | 142.3 |   |
|                                                                            |   |   |                                         |   |   |   |   |
| Income                from discontinued operations, net of taxes      |   |   | 2,939                                        |   |   | n/m |   |
|                                                                            |   |   |                                         |   |   |   |   |
| Net                income (loss)                                           |   |   | 4,296                                        |   |   | 309.9 |   |

----

Index

**NET      SALES**

**COST      OF SALES**

**OPERATING      EXPENSES**

----

Index

**GAIN      ON THE SALE OF ASSETS, NET**

**INTEREST      EXPENSE**

**INVESTMENT      INCOME**

**OTHER      INCOME, NET**

**INCOME      TAXES**

**DISCONTINUED      OPERATIONS**

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Index

**NET      INCOME (LOSS)**

**LIQUIDITY,      CAPITAL RESOURCES AND FINANCIAL CONDITION**

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Index

**CRITICAL      ACCOUNTING POLICIES**

**FORWARD-LOOKING      STATEMENTS**

| ·   | the                potential fluctuations in the Company’s operating results; |
|--------------------|-------------------------------------------------------------------------------------|

| ·   | the                availability for floorplan financing for the Company's recreational                vehicle dealers and corresponding availability of cash to the                Company; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | uncertainties                regarding the impact on sales of the disclosed restructuring steps                in both                the Recreational Vehicle and Housing and Building                Segments; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the                ability to sell and close the operations for sale as                described; |
|--------------------|---------------------------------------------------------------------------------------------------|

| ·   | the                accuracy of the estimates of the costs to remedy the disclosed                recreational vehicle warranty                issues; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | price                volatility of materials used in production and the ability to pass                on                rapidly increasing costs of product components and raw materials                to end                buyers; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | uncertainties                and timing with respect to sales resulting from recovery efforts                in the                Gulf Coast; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the                availability and price of gasoline and diesel fuel, which can impact                the                sale of recreational vehicles; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the                Company's dependence on chassis and other suppliers; |
|--------------------|-------------------------------------------------------------------------|

| ·   | interest                rates, which affect the affordability of the Company's                products; |
|--------------------|---------------------------------------------------------------------------------------------------------|

| ·   | the                availability and cost of real estate for residential housing; |
|--------------------|----------------------------------------------------------------------------------|
| ·   | the              increased size and scope of work of commercial and military housing              projects as compared to the Company's traditional single family homes              business;  |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the                ability of the Housing and Building Segment to perform in new market                segments where it has limited experience; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | adverse                weather conditions affecting home                deliveries; |
|--------------------|-------------------------------------------------------------------------------------|

| ·   | potential                liabilities under repurchase agreements and guarantees; |
|--------------------|----------------------------------------------------------------------------------|

| ·   | changing                government regulations, such as those covering accounting standards; |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | environmental                matters or product warranties and recalls, which may affect costs                of                operations, revenues, product acceptance and profitability; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | legislation                governing the relationships of the Company with its recreational                vehicle                dealers, which may affect the Company’s options and liabilities in the                event of a general economic downturn; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | consolidation                of distribution channels in the recreational vehicle industry; |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | the              impact of consumer confidence and economic uncertainty on high-cost              discretionary product purchases, which can hinder the sales of              recreational vehicles; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | and                also on the state of the recreational vehicle and housing industries                in                the United States. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | changes                in property taxes and energy costs, |
|--------------------|------------------------------------------------------------|

| ·   | changes                in federal income tax laws and federal mortgage financing                programs,  |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | competition                in the industries in which the Company operates, |
|--------------------|-----------------------------------------------------------------------------|

| ·   | consolidation                of distribution channels in the recreational vehicle industry, |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | the                Company’s ability to increase gross margins which are critical to                profitability whether there are or are not increased sales, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the                Company’s use of incentives at either the wholesale or retail level, |
|--------------------|-----------------------------------------------------------------------------------------------|

| ·   | further                developments in the war on terrorism and related international                crises, |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | uncertainties                of matters in litigation and other risks and uncertainties. |
|--------------------|------------------------------------------------------------------------------------------|

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Index

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Index

**ITEM      3. QUANTITATIVE AND QUALITATIVE DISCLOSURES      ABOUT MARKET RISK**

**ITEM      4. CONTROLS AND      PROCEDURES**

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Index

**PART      II. OTHER INFORMATION**

Item      1. Legal Proceedings

Item      6. Exhibits

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Index

**SIGNATURES**

**COACHMEN      INDUSTRIES, INC.**

| Date:                May 5, 2006 | By:    | /s/                Claire C. Skinner                          |
|----------------------------------|--------|---------------------------------------------------------------|
|                             |   | Claire                C. Skinner, Chairman of the Board and   |
|                             |   | Chief                Executive Officer                        |
|                             |   |                                                          |
|                             |   |                                                          |
|                             |   |                                                          |
|                             |   |                                                          |
| Date:                May 5, 2006 | By:    | /s/                Richard M. Lavers                          |
|                             |   | Richard                M. Lavers, Executive Vice President,   |
|                             |   | General                Counsel and Secretary, Chief Financial |
|                             |   | Officer                and Chief Administrative Officer       |
|                             |   |                                                          |
|                             |   |                                                          |
|                             |   |                                                          |
|                             |   |                                                          |
| Date:                May 5, 2006 | By:    | /s/                Colleen A. Zuhl                            |
|                             |   | Colleen                A. Zuhl, Chief Accounting Officer      |
|                             |   |                                                          |

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Index

**INDEX      TO EXHIBITS**

| Number                AssignedIn                RegulationS-K,                Item 601 | Description                of Exhibit                                                                                                                                                                                                                                |
|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                   |                                                                                                                                                                                                                                                                 |
| (3)(a)(i)                                                                              | Articles                of Incorporation of the Company as amended on May 30, 1995 (incorporated                by reference to Exhibit 3(i) to the Company's Annual Report on Form                10-K                for the fiscal year ended December 31, 1995). |
|                                                                                   |                                                                                                                                                                                                                                                                 |
| (3)(a)(ii)                                                                             | Articles                of Amendment to Articles of Incorporation (incorporated by reference                to                Exhibit 4.2 to the Company's Form S-3 Registration Statement, File                No.                333-14579).                       |
|                                                                                   |                                                                                                                                                                                                                                                                 |
| (3)(b)                                                                                 | By-Laws                as modified through September 9, 2005 (incorporated by reference                to the                Company's Form 8-K filed September 15, 2005).                                                                                      |
|                                                                                   |                                                                                                                                                                                                                                                                 |
| (10)(a)                                                                                | Form              of the 2006 Restricted Stock Award Agreement and listing of the maximum              number of shares each Executive Officer may earn under the              Agreements.                                                                           |
|                                                                                   |                                                                                                                                                                                                                                                                 |
| (31.1)                                                                                 | Rule                13a-14(a) Certification of Chief Executive Officer.                                                                                                                                                                                              |
|                                                                                   |                                                                                                                                                                                                                                                                 |
| (31.2)                                                                                 | Rule                13a-14(a) Certification of Chief Financial Officer.                                                                                                                                                                                              |
|                                                                                   |                                                                                                                                                                                                                                                                 |
| (32.1)                                                                                 | Section                1350 Certification of Chief Executive Officer.                                                                                                                                                                                                |
|                                                                                   |                                                                                                                                                                                                                                                                 |
| (32.2)                                                                                 | Section                1350 Certification of Chief Financial                Officer.                                                                                                                                                                                 |

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----