Fleetwood Enterprises Inc. slashed its quarterly dividend and announced it will post a loss for the third consecutive quarter, which will end in late January.
To conserve cash, Fleetwood cut its dividend to 4 cents a share, from 19 cents a share. The dividend will be payable Feb. 14 to shareholders of record as of Jan. 5.
Lowering the dividend will make around $20 million available to Fleetwood annually for other purposes, said Glenn Kummer, chairman and CEO.
The freed-up $20 million will be used for debt reduction and to “maintain the company’s financial flexibility.”
Fleetwood executives also told the Reuters news service that the company will lose more that $3.4 million during its third fiscal quarter, which will end in late January.
Fleetwood lost $3.4 million during its second fiscal quarter, which ended Oct. 29, and the company lost $34.5 million during the six months ended Oct. 29.
Prior to Oct. 29, Fleetwood finalized a $40 million line of credit with Ford Motor Credit Co. to finance the purchase of motorhome chassis.
Fleetwood currently is negotiating to replace some or all of its existing manufactured housing retail inventory debt.