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Fleetwood Enterprises Inc. reported a 14% increase in revenues for the company’s third quarter of fiscal 2006, ended Jan. 29.
In its preliminary report, the Riverside, Calif.-based recreational vehicle and manufactured housing builder posted third-quarter sales of approximately $580 million from $509 million the previous year. For the nine months, revenues rose 1% to $1.83 billion from $1.81 billion in the prior year.
Fleetwood President and CEO Elden Smith noted that quarterly revenues had been boosted by orders from the Federal Emergency Management Agency (FEMA) for emergency housing, including $74 million in sales of travel trailers.
“The FEMA orders have served as a bridge over what is normally a seasonal lull and provided time for many of our recent restructuring moves to gain further traction,” Smith said. “We are using this time effectively. For instance, our product development groups have focused on preparing our ’07 lineup of travel trailer products while the plants have seen improved efficiencies from the manufacture of significant numbers of identical trailers to FEMA’s specifications.”
RV revenues for the third quarter grew 5% to approximately $361 million compared with $343 million a year ago, due to a 75% increase in travel trailer sales. Motorhome sales decreased 23% during the three-month period while folding camping trailers were down 5%.
Smith attributed the decline in motorhome sales to a soft market and “prudence” by Fleetwood and its dealers “to avoid the kind of overproduction and resulting excess inventory that occurred in last year’s third quarter.”
Smith said he was “cautiously optimistic” about the spring selling season.
“While there are a number of positive indications, including elevated consumer confidence and some moderation in fuel prices, the majority of the very early spring shows have been slower than they were last year, both in traffic and in sales,” he said. “We feel that our discipline in not building excess RV finished unit inventory will be helpful to our operating results, and we are confident that when sales begin to pick up we can increase production correspondingly.”