Fleetwood Enterprises reports its first fiscal quarter motorhome revenues were down 50% and the company now anticipates that it will report a loss for the three-month period that ended Sunday (July 30).
In total, Fleetwood’s RV revenues were down 34% to $319 million during the May-through-July period, the first quarter of the company’s fiscal year 2001.
In addition to the 50% decline in motorhome sales to $152 million, Fleetwood’s travel trailer and fifth-wheel revenues were down 6% to $140 million during the three months ended July 30.
Fleetwood’s folding camper sales also were down 8% to $27 million.
Due to difficulties in the company’s RV and manufactured home businesses, Fleetwood now is downsizing, according to Nelson Potter, president.
“The company reduced staffing at manufacturing plants and at corporate headquarters in response to declining sales volume,” Potter said. “Downsizing and restructuring actions have resulted in employee severance payments and other plant closing costs that will have a material impact on first (fiscal) quarter results.”
Fleetwood will disclose its full financial report in about four weeks and it anticipates reporting a loss, in part, because of “sales discounts and dealer incentives initiated to stimulate sales of certain slow-moving model year 2000 motorhome products,” Potter said. “The good news it hat we have largely eliminated the factory inventories of last year’s models and have been building only model year 2001 products for the past month.”