Fleetwood’s financial performance during the quarter that will end around Oct. 31 will not compare favorably with the results the company reported for the August-through-October portion of 1999, according to Nelson Potter, president.
Potter issued his forecast today (Aug. 30) at the same time that Fleetwood reported it lost $31.1 million during the three months ended July 30.
During the three months ended Oct. 31, 1999, Fleetwood earned $29.8 million on sales of $1.01 billion.
“The second (fiscal) quarter will be adversely affected by continuing weakness in the manufactured housing market and a lingering slowdown in motorhome sales,” Potter said. “The combination of reduced sales volume and some remaining restructuring charges will have a significant impact on RV profits.
“In addition, we have been experiencing more prevalent sales of entry-level RV products, which carry lower margins than our other RV products,” Potter continued.
Meanwhile, Robert Curran, investment analyst at Merrill Lynch told Reuters news service “the pressures in RVs and (manufactured) housing for the industry and for Fleetwood are going to continue through the winter at least.”
However, Potter said he was pleased with the dealer order volume during Fleetwood’s national dealer meeting in Nashville a few weeks ago. “The results (in Nashville) were very encouraging. Our new products were well received and we wrote more orders than we expected,” he said.