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Fleetwood Enterprises Inc., Riverside, Calif., announced today (Oct. 29) a 6% increase in revenues for the company’s fiscal 2005 second quarter, ended Oct. 24, despite a softening in the RV sector.
“The RV industry has recently seen some signs of retail slowing,” Fleetwood’s President and CEO Ed Caudill said. “We think that this is a temporary condition that is partly weather-related and partly the result of weakened consumer confidence.”
In the preliminary report, Caudill also noted: “Despite these challenges during our second quarter, we still expect to record a net profit that will be an improvement over the prior year. However, we now believe the earnings improvement will be less than previously anticipated.”
Fleetwood’s revenues totaled $713 million for the period compared with $675 million the previous year. For the first six months, sales increased 9% to $1.44 billion compared with $1.32 billion in fiscal 2004.
The full-line manufacturer reported that motorhome sales were up 10% for the quarter to $302 million, while towable sales, which include the recently consolidated travel-trailer and camping-trailer operations, declined 16%.
Manufactured housing sales in the second quarter increased 14% to $245 million compared with $214 million a year ago.
“We are pleased to report our fourth straight quarter of growth in Housing Group sales and continued growth in revenues for the motorhome division,” Caudill said. “We achieved solid top-line results in these segments despite the negative impact of the hurricanes and related extreme weather conditions in the Southeast on both of our industries, which was somewhat offset by emergency-related orders for manufactured homes and travel trailers.
“We continue to believe the fundamentals of the RV industry are sound, and are backed by powerful demographic trends. To manage the short-term fluctuation, we offered selected incentives to reduce our finished goods inventory. Going forward, we will modify our production as necessary to correspond to wholesale and retail demand.”