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Fleetwood Enterprises Inc. returned to profitability during the second quarter of its fiscal year 2003, earning $4.6 million for the three months ended Oct. 27.
The net profit earned in the August-through-October portion of this year compares with the $12.3 million net loss the Riverside, Calif.-based company incurred in the same portion of 2001.
For the six months ended Oct. 27, Fleetwood reported a net profit of $3.1 million, compared with a net loss of $104.1 million incurred a year earlier. The $104.1 million included an $80.6 million one-time-only noncash charge for writing down the remaining goodwill related to Fleetwood’s manufactured home retail business.
“Our recreational vehicle operations have gained strength and market share, revenues and operating income, and the manufacturing portion of our Housing Group has been managed for profitability even while revenues continue to decline,” said Ed Caudill, president and CEO. “We are pleased with our progress on all fronts. Management expects that we will see further improvements to profitability, particularly in the RV Group, following the seasonally difficult third (fiscal) quarter.”
During the industry’s National RV Trade Show in Louisville last week, Caudill said, “Our new travel-trailer lineup and our refreshed motorhome products were warmly received by the dealers in attendance. The majority of the RV products that we exhibited to dealers were new, which is a great testament to our people who, despite the size and maturity of this company, have demonstrated the speed and agility with which we can react to the market.”
For the three months ended Oct. 27, Fleetwood’s RV sales revenue increased 33% to $395.8 million and its RV operations posted a $17 million operating profit, compared with a $10.1 million operating loss a year earlier.
For the six months ended Oct. 27, Fleetwood’s RV operating revenue climbed 36% higher to $766.8 million and it reported an operating profit of $34.7 million, compared with an operating loss of $27.9 million incurred a year earlier.
Fleetwood sold 2,599 motorhomes to dealers in the August-through-October period, a 30% increase over the 1,999 units shipped a year earlier. During the six months ended Oct. 27, Fleetwood’s motorhome shipments increased 36% to 5,081 units.
The company’s travel trailer and fifth-wheel shipments increased 29% in the August-through-October period to 8,377 units and its travel trailer and fifth-wheel deliveries in the six months ended Oct. 27 climbed 21% higher to 16,989 units.
Fleetwood’s folding camper shipments increased 8% in the August-through-October period to 5,452 units and, in the six months ended Oct. 27, its folding camper deliveries were up 11% to 9,677 units.
Despite the RV Group’s gains, Caudill believes Fleetwood will report a net loss for its third fiscal quarter, which will end in late January. However, he believes the company will return to profitability again in its fourth fiscal quarter, which will cover the February-through-April period.