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Losses from manufactured home retailing and from travel trailer and fifth-wheel assembly continued to plague Fleetwood Enterprises Inc. during its third fiscal quarter, which ended Jan. 27.
The Riverside, Calif.-based company reported today (Feb. 28) that its manufactured home retailing operations lost $9.6 million and its RV operations lost $9.2 million during the November-through-January period, the third quarter of its fiscal year 2002.
Fleetwood’s motorhome division earned a $5.6 million operating profit during the third fiscal quarter, but that was more than offset by losses at its travel trailer and fifth-wheel operations, according to David Engelman, interim president and CEO.
Although still quite large, the losses at Fleetwood’s manufactured home retailing and RV assembly operations during the recently completed quarter were smaller than they were a year ago, when manufactured home retailing lost $25.3 million and RVs lost $29.7 million during the corresponding three-month period.
For the nine months ended last Jan. 27, Fleetwood’s manufactured home retailing operations lost $30.6 million and its RV operations lost $36 million.
“We were pleased with the performance of the motorhome division, which recovered from a loss position to an operating profit of $5.6 million this quarter,” Engelman said. “Travel trailers’ (and fifth-wheels’) performance improved compared to last year, but we still have work to do to eliminate this division’s losses.”
Although Engelman believes Fleetwood will continue making money from building motorhomes during the February-through-April quarter, he does not believe the travel trailer and fifth-wheel assembly business will reach breakeven.
Meanwhile, Fleetwood’s manufactured home building business was profitable during the three months ended Jan. 27, earning $7.4 million, compared with an $8 million profit a year earlier.
During the nine months ended Jan. 27, Fleetwood’s manufactured home building business earned a total of $45 million, compared with $32.8 million earned during the same period a year earlier.