Fleetwood Enterprises Inc. is maintaining its forecast of break-even to slightly profitable results for its second fiscal quarter despite the recent decision by Deutsche Financial Services (DFS) to liquidate its manufactured home dealer inventory finance portfolio.
If Fleetwood is profitable in its second fiscal quarter, which ends in late October, it would be the first time after nine consecutive quarters of net loses.
Prior to issuing the forecast on Sept. 5, Fleetwood executives were aware of the likelihood that DFS would would shut down its manufactured home dealer floorplan business, so that possibility was factored into the calculations, said Kathy Munson, Fleetwood’s director of investor relations.
DFS announced on Sept. 16 it would stop funding manufactured home dealer inventory finance loans as of Nov. 15.
DFS also plans to sell its RV dealer inventory finance business to a unit of GE Capital. That deal is expected to close before the end of this year.
Rumors about the possibility of DFS closing its manufactured home dealer inventory finance business reportedly were a major reason for the fall of Fleetwood’s stock price to a 52-week low of $2.37 a share in mid-August.
Since then, Fleetwood’s stock has climbed above $7 a share, although it traded for a little more than $6 as of Friday (Sept. 20). Fleetwood’s stock slid down to around $5.50 a share in New York Stock Exchange trading on Monday (Sept. 23).