Fleetwood Enterprises Inc. reported Thursday (Nov. 3) quarterly revenue fell on lower demand for recreational vehicles, but the company said it expected improved results in the current period due to work for the Federal Emergency Management Agency (FEMA).
A preliminary report for the Riverside, Calif., company’s second quarter, ended Oct. 30, showed revenue declined 3% to $626 million from $646 million a year earlier.
RV sales, impacted by continued softness in the motorhome market, were down 13% during the three-month period to $392 million, compared to $450 million a year ago. Motorhome revenue decreased 18% to $249 million from $302 a year ago while travel trailer sales dropped 2% to $117 million and folding camping trailer sales fell 10% to $26 million.
“The RV market, particularly in motorhomes, is appreciably softer than last year,” Fleetwood’s President and CEO Elden L. Smith said. “However, our motorhome sales at recent retail shows have been encouraging.”
Smith indicated the company would “continue to resist discounting on our 2006 products,” but acknowledged that motorhome competitors were offering “significant” discounting and incentives.
“Competitive pressure will be significant in the coming months,” Smith said.
Fleetwood said orders from FEMA now total 10,600 units. It will begin shipping the majority of an original order for 7,500 units during the third quarter.
The company is set to report second-quarter results on Nov. 28.