RV and manufactured-home builder Fleetwood Enterprises Inc. reported a net loss of $17.8 million for the three months ended April 25, although it did report an operating profit of $11.3 million for the period.
The loss for the fourth quarter of the firm’s fiscal year 2004 represents an improvement over the $55.4 million net loss incurred in the fourth quarter of f2003.
The company’s operating profit of $11.3 million during the quarter also represents an improvement over the $33.1 million operating loss Fleetwood incurred during the same period a year earlier.
The fourth-quarter loss occurred primarily because Fleetwood needed to take a $15 million noncash charge against its earnings to reflect the increase in market value of the trust-preferred securities the company issued a few years ago when it was desperate to raise cash and needed a deferred tax asset, according to Ed Caudill, president and CEO.
Fleetwood recently converted a significant portion of its trust-preferred securities into common stock, allowing the company to lower its annual interest expenses by $17.9 million. Consequently, Caudill believes Fleetwood will be profitable for the first quarter of fiscal year 2005, which will end on July 25, and be “significantly profitable” for all of fiscal 2005.
For 2004, Fleetwood reported a net loss of $22.3 million, although that was an improvement over the $70.7 million net loss it incurred in 2003.
Fleetwood’s total sales revenue increased 20% in the fourth quarter of 2004 to $689.4 million and its total sales for the year climbed 13% to $2.61 billion.