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Fleetwood Enterprises Inc. reported a net loss of $10.2 million for the third quarter of its fiscal year 2004 because losses from its manufactured housing operations more than offset its RV Group’s profits.
The $10.2 million loss during the three months ended Jan. 25 represents a significant improvement, however, over the $18.4 million net loss Fleetwood incurred during the same period a year earlier.
In fact, the recent November-through-January period was the best third fiscal quarter Fleetwood has experienced in four years, said Ed Caudill, president and CEO.
“We were still affected in the quarter by the usual seasonal challenges, compounded by the industrywide weakness in manufactured housing,” Caudill said. “Nonetheless, our consolidations and cost-cutting initiatives continued to yield returns and we saw the investments we have made in innovation, design and vertical integration begin to payoff in the form of higher revenues.
“While our motorhome operations provided most of the lift, we also achieved financial progress throughout the company primarily as a result of top-line (sales revenue) growth and production efficiencies.”
Fleetwood’s total sales revenue increased 21% during the November-through-January period to $597.8 million, compared with $493.2 million a year earlier.
For the nine months ended Jan. 25, Fleetwood posted a net loss of $4.5 million, which, again, was a vast improvement over the $15.3 million net loss it incurred during the same period a year earlier.
The Riverside, Calif., company’s total sales during the nine months ended Jan. 25 increased 10% to $1.92 billion, compared with $1.75 billion a year earlier.
Caudill now believes Fleetwood will be “marginally profitable” during the fourth quarter of fiscal 2004, which will end in late April.
“In general, each division in the company is improving its performance, but we do not expect the manufactured housing industry’s anticipated recovery, which has already begun by some measures, to take effect overnight,” Caudill said. “Accordingly, we believe that losses in our Housing Group, combined with other expenses, will offset much of the anticipated operating profit from our RV Group, and it is presently uncertain as to whether we will be profitable for the full fiscal year.
“However, the trends continue to be positive in both our industries and on a company-specific basis, and we are well positioned for growth, giving us cause for confidence about our prospects in fiscal year 2005.”