Fleetwood Reports Preliminary Revenues for Fiscal 2006 First Quarter
04 Agosto 2005 - 9:30AM
PR Newswire (US)
- Manufactured Housing Loan Portfolio Sold; Excess RV Inventory
Cleared - RIVERSIDE, Calif., Aug. 4 /PRNewswire-FirstCall/ --
Fleetwood Enterprises, Inc. (NYSE:FLE), a leading producer of
recreational vehicles and manufactured housing, today announced
preliminary sales for the first quarter of fiscal 2006, which ended
on July 31, 2005. Company revenues for the quarter were
approximately $615 million, a decrease of 7 percent from last
year's first quarter total of $659 million. Quarterly sales for
wholesale manufactured housing improved 4 percent, while
recreational vehicle revenues declined by 13 percent. The quarter
was a 14-week quarter compared to last year's standard 13-week
quarter. Manufactured housing preliminary first quarter sales were
$204 million before eliminating intercompany sales to the retail
business of $26 million. This compares with last year's sales of
$196 million before intercompany sales of $36 million. "Continued
strong sales in the manufactured housing industry in California,
Arizona and Florida were offset by weakness in the central part of
the country," said Elden Smith, president and chief executive
officer. "Fleetwood continues to experience retail market share
improvements and we see signs of gradual recovery in the lending
environment so we are optimistic about our business prospects in
the coming quarters. Last week, we successfully closed the sale of
our manufactured housing loan portfolio to Vanderbilt Mortgage and
Finance, Inc., and expect to close the sale of the majority of the
assets of our retail operation to Clayton Homes shortly. The sale
of these businesses to affiliates of Berkshire Hathaway Inc. marks
a return to our traditional focus on manufacturing." Recreational
vehicle sales for the first quarter were approximately $423
million, down 13 percent from $486 million a year ago. Travel
trailer sales accounted for the bulk of the decline, with
preliminary sales off 30 percent to $103 million compared with $146
million in the prior year. Motor home revenues slowed by 6 percent
to about $299 million compared with $318 million in the same period
a year ago, while folding trailer sales slipped 4 percent to about
$20 million from $21 million in last year's first quarter. "Given
current wholesale market conditions, we are pleased with our motor
home sales," Smith said. "Last year's first quarter revenues were
exceptionally difficult to match, but this quarter compares
favorably to most quarters in our recent history. As a result, we
were able to reduce our finished goods unit inventory by more than
80 percent during the quarter, and now have less than two day's
production on hand. Even though travel trailer revenues continued
to lag, we were also successful in driving down that division's
finished goods inventory to under a week's production. Although, as
previously announced, we do not believe that the RV Group operated
profitably in the first quarter, we are now comfortable with the
Group's current inventory levels and pleased with its new
organizational structure. "Our first quarter results will be
impacted by charges related to our previously announced
restructuring, but we now have our basic management structure in
place and our people in the right jobs," Smith concluded. "This
causes me to be optimistic about our future operating performance.
The divestiture of our manufactured housing retail and finance
units puts a significant distraction largely behind us, and allows
us to quickly minimize the earnings drag we had been experiencing
from the retail division." The Company confirmed its intent to
continue to defer distributions on its 6% preferred securities,
otherwise due on August 15, 2005. About Fleetwood Fleetwood
Enterprises, Inc. is a leading producer of recreational vehicles
and manufactured homes. This Fortune 1000 company, headquartered in
Riverside, Calif., is dedicated to providing quality, innovative
products that offer exceptional value to its customers. Fleetwood
operates facilities strategically located throughout the nation,
including recreational vehicle, manufactured housing and supply
subsidiary plants. For more information, visit the Company's
website at http://www.fleetwood.com/. This press release contains
certain forward-looking statements and information based on the
beliefs of Fleetwood's management as well as assumptions made by,
and information currently available to, Fleetwood's management.
Such statements reflect the current views of Fleetwood with respect
to future events and are subject to certain risks, uncertainties,
and assumptions, including risk factors identified in Fleetwood's
10-K and other SEC filings. These risks and uncertainties include,
without limitation, the cyclical nature of both the manufactured
housing and recreational vehicle industries; ongoing weakness in
the manufactured housing market; continued acceptance of the
Company's products; the potential impact on demand for Fleetwood's
products as a result of changes in consumer confidence levels; the
effect of global tensions on consumer confidence; expenses and
uncertainties associated with the introduction and manufacturing of
new products; the future availability of manufactured housing
retail financing, as well as housing and RV wholesale financing;
exposure to interest rate and market changes affecting certain of
the Company's assets and liabilities; availability and pricing of
raw materials; changes in retail inventory levels in the
manufactured housing and recreational vehicle industries;
competitive pricing pressures; the ability to attract and retain
quality dealers, executive officers and other personnel; the
Company's ability to successfully meet its obligations with respect
to Section 404 of the Sarbanes-Oxley Act; and the Company's ability
to obtain financing needed in order to execute its business
strategies. Contact: Lyle Larkin, Vice President & Treasurer
(951) 351-3535 or Kathy A. Munson, Director -- Investor Relations
(951) 351-3650 DATASOURCE: Fleetwood Enterprises, Inc. CONTACT:
Lyle Larkin, Vice President & Treasurer, +1-951-351-3535, or
Kathy A. Munson, Director -- Investor Relations, +1-951-351-3650,
both of Fleetwood Enterprises, Inc. Web site:
http://www.fleetwood.com/
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