Fleetwood Enterprises Inc.’s RV sales revenue increased by 33% in the second quarter of its fiscal year 2003, which ended Sunday (Oct. 27).
The Riverside, Calif. company reported its overall RV sales totaled $396 million in the August-through-October period, compared with $297 million during the same period a year earlier.
Fleetwood’s motorhome sales revenue amounted to $240 million, a 40% improvement over a year-earlier.
Fleetwood’s travel trailer and fifth-wheel sales revenue also showed significant improvement in the August-through-October, climbing 26% higher to $117 million.
The company’s folding-camper sales also increased 21% during the three month period that ended Sunday to $39 million.
Iin the six-month period that ended on Sunday, Fleetwood’s total RV sales revenue increased 36% to $767 million. Motorhome sales were up 50% to $458 million and travel-trailer/fifth-wheel revenue climbed 20% to $239 million. Folding-camper sales revenue also increased 21% in the six-month period to $70 million.
“Our refreshed RV product lines and our focus on retail customer and dealer expectations have produced noteworthy progress in our sales numbers,” said Edward Caudill, Fleetwood’s president and CEO. “It’s important to point out that these revenue gains have not come at the cost of profitability, as we expect to report an operating profit in all three RV divisions.
“I’m also pleased to report that our (RV) backlogs are healthy as we enter the seasonally difficult third quarter (which will end in late January),” Caudill added.
Another sign of the recovery of Fleetwood’s RV business is the apparent decision to discontinue its consumer rebate program, which expired on Sunday. Fleetwood offered consumer rebates during most of this calendar year to help its dealers sell aged motorhome inventory, but the reference to the rebate program has been removed from the company’s website, www.fleetwoodrv.com.
Meanwhile, Fleetwood’s manufactured housing business continues to weigh-down its RV business, which explains why Caudill is forecasting that Fleetwood will report only “above breakeven” results for its second fiscal quarter.
The company will report its complete financial results for the August-through-October period in about five weeks.
“It’s difficult to overstate the harshness of the financing situation in the manufactured housing industry,” Caudill said. “It is not a lack of consumer demand for our products. We continue to see relatively strong traffic at our retail stores, but the industry remains in need of additional financing.”
Fleetwood’s manufactured home sales revenue declined 18% during the three-month period that ended on Sunday, and its manufactured home sales were down 19% during the six months that ended on Oct. 27.