Fleetwood Enterprises Inc. reported it lost $3.4 million during the three months ended Oct. 29, primarily because of losses in manufactured home retailing, costs related to factory closures and the fact its RV business operated slightly in the red.
The $3.4 million loss compares with a profit of $29.8 million earned during the August-through-October period of 1999.
During the six months ended Oct. 29, Fleetwood lost a total of $34.5 million, compared to a profit of $56.2 million earned during the same portion of 1999.
During its second fiscal quarter, Fleetwood incurred one-time-only expenses totaling $3.9 million from the closure of four manufactured housing plants and the Avion towables plant in Omaha, Neb. Employee severance payments and other expenses related to the closure of the Avion plant totaled $1.9 million.
Otherwise, Fleetwood President Nelson Potter said the company’s RV business operated “slightly below break-even” primarily due to lower motorhome sales.
Fleetwood’s manufactured home-building business was “solidly profitable” during the company’s second fiscal quarter, but the manufactured housing retail operation lost $6.1 million during the August-through-October period.
Potter added that he is “encouraged by recent progress” to return the company to profitability.