Fleetwood Enterprises Inc. reported its motorhome sales revenue soared 63% higher and its travel trailer and fifth-wheel sales increased 13% during the first quarter of its fiscal year 2003, which ended Sunday (July 28).
Fleetwood’s folding camper sales revenue also increased 19% during the May-through-July period.
However, because the manufactured housing industry “continues to face the most difficult environment in memory,” Fleetwood executives believe the company will report a net loss for its first fiscal quarter, although it will “approach breakeven” in terms of operations.
Fleetwood will report its earnings for the May-through-July period in about five weeks.
When the sales revenue from all three RV divisions are combined, Fleetwood’s RV sales increased 39% during the three months ended July 28 to $369 million. Its motorhome sales amounted to $218 million and its travel trailer and fifth-wheel sales totaled $121 million. Folding camper sales were $30 million during the May-through-July period.
“We have successfully cut costs in many areas and expect to report an operating profit in all three RV divisions (for the first fiscal quarter),” said David Engelman, interim president and CEO.
Engelman, a Fleetwood Board member and retired financial services firm executive, will be replaced in a few weeks by Edward Caudill, a 59-year-old trucking industry executive, whose hiring was announced on Friday (July 26).
Meanwhile, Fleetwood’s manufactured housing sales declined 20% during the three months ended July 28 to $231 million and sales revenue at Fleetwood-owned manufactured home retail locations fell 33% to $72 million largely due to the closing of several of those locations and a tight retail financing environment, Engelman said.
Fleetwood may close more manufactured home production plants and retail centers, although the company will not rush into those decisions because the manufactured housing industry is expected to begin a recovery during calendar year 2003, Engelman added.