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Fleetwood Enterprises Inc. reported fiscal 2005 fourth quarter sales dropped over 13%, driven down by a sharp 22% decline in revenues from recreational vehicle operations.
The Riverside, Calif., builder’s preliminary report showed year-end revenues as essentially flat with sales of $2.37 billion compared to $2.36 billion in fiscal 2004. For the three-month period, ended April 24, Fleetwood posted revenues of around $555 million compared with $640 million the year prior.
Recreational vehicle sales for the fourth quarter slowed significantly to approximately $378 million from $483 million a year ago. Motorhome revenues declined 20% to $242 million from $301 million in the prior year, while towable sales fell 25% to $136 million compared to $181 million.
For the full fiscal year, sales of recreational vehicles totaled approximately $1.66 billion, down 7% from $1.78 billion in the prior year. Motorhome sales were virtually flat at $1.09 billion compared with $1.10 billion, while sales of towables were down 17% to $563 million from $675 million last year.
Manufactured housing operations produced revenue gains for both the fourth quarter and year-end.
“The manufactured housing industry appears to have bottomed out, and we believe that calendar 2005 year-to-date increases in shipments bode well for a gradual recovery,” said Elden Smith, president and CEO.
Smith, who rejoined the company in March replacing Ed Caudill, has instituted several key management changes along with beginning the process of exiting the company from the manufactured housing retail and financial sectors. On the RV side, Smith said Fleetwood has taken the necessary steps to monitor production and reduce inventory levels.
“We are maintaining a close watch on production levels and will adjust, as needed, to meet demand,” Smith said. “Lower sales and related production adjustments, combined with competitive pricing pressures and targeted dealer incentives designed to help move our inventories, contributed to a financially difficult fourth quarter for the RV business. We believe, however, that the business is now in a good position to operate profitably in our first quarter.”
With regard to fiscal 2006, Smith said the company’s restructuring and “renewed focus on products and manufacturing” will result in “improved financial performance.”