Fleetwood Enterprises Inc. reports it was profitable during its first fiscal quarter although its RV-related operating earnings declined 16% when compared with the May-through-July portion of last year.
The company’s motorhome, travel-trailer/fifth-wheel and manufactured home building divisions were profitable while its folding-camper and manufactured home retail operations posted net losses.
Fleetwood’s net earnings totaled $1.9 million during the three months ended July 27, compared with a net loss of $1.5 million incurred a year earlier.
The New York Stock Exchange-listed company’s RV Group operating earnings totaled $14.9 million during the May-through-July period, compared with $17.7 million earned from operations during the same portion of last year.
Fleetwood’s motorhome home sales revenue increased 18% during the three-month period to $257.3 million and its travel-trailer/fifth-wheel sales increased 29% to $156.8 million.
The company’s folding-camper sales revenue fell 27% to $22.4 million.
“Clearly, our product innovations are creating the desired effect,” said Ed Caudill, Fleetwood’s president and CEO. “Dealer and consumer acceptance of our motorhomes and travel trailers (and fifth-wheels) is very encouraging.
“We expect that the higher revenues and enhanced market share that we now enjoy in travel trailers (and fifth-wheels) will lead to improved profitability, as it has in motorhomes,” Caudill continued. “We are pleased with our gains in diesel motorhomes and fifth-wheel trailers, two growing and profitable market segments.”
It appears Fleetwood has “an excellent opportunity to have a profitable year in fiscal 2004,” Caudill said. (The fiscal year ends at the end of April.) “We currently expect to generate a net profit in the second quarter.”