Fleetwood Reports Preliminary Revenues for Third Quarter, First Nine Months of Fiscal 2007
01 Fevereiro 2007 - 10:30AM
PR Newswire (US)
RIVERSIDE, Calif., Feb. 1 /PRNewswire-FirstCall/ -- Fleetwood
Enterprises, Inc. (NYSE:FLE) announced today preliminary revenues
for the fiscal third quarter and first nine months ended January
28, 2007. Activity for the quarter largely reflected typical
seasonal slowness in contrast to the prior year, which benefited
from unusual demand for post-hurricane living accommodations,
including $129 million of sales of FEMA-specified units. Revenues
for the third quarter were approximately $439 million, a drop of 25
percent from $584 million in the same quarter last year, and down 4
percent for non-FEMA sales to independent dealers. For the first
nine months of the current fiscal year, revenues declined 18
percent to $1.50 billion from $1.83 billion in the prior year.
Non-FEMA sales were off 9 percent in the same period. Recreational
vehicle sales for the third quarter were off 12 percent to
approximately $320 million compared with $365 million a year ago.
The decline was primarily due to a 51 percent drop in travel
trailer sales to $82 million compared to last year's sales of $169
million, which included $72 million of trailers built to FEMA
specifications for disaster relief. Sales of motor homes increased
24 percent to $224 million and folding trailers were down 9 percent
to $14 million. Comparable non-FEMA revenues for the RV Group were
up 9 percent. "The significant increase in motor home sales is very
encouraging," Fleetwood's President and CEO Elden L. Smith said.
"The growth reflects a change in mix to more diesel units, as well
as higher overall unit sales. Travel trailer revenues were down 16
percent ex-FEMA, which is partially due to the increased demand
last year for conventional travel trailers to meet temporary
shelter needs created by the hurricanes as well as lower industry
demand this year, but also indicates that we have further work to
do relative to the competitiveness of some of our travel trailer
product lines. We have been watching the early spring RV retail
shows closely. While results are mixed, it does appear that motor
home consumers are more willing to purchase this year due to lower
fuel costs and more stable interest rates. We have been pleased
with the response to our product lines in most categories,
including our low- to mid-priced Class A gas and our Class A diesel
motor homes. Travel trailer sales are also improved in some
segments, including high-end fifth-wheels and our toy hauler
series." Third quarter Housing Group sales of $109 million
represented a drop of 48 percent compared to sales of $209 million
in the similar period of fiscal 2006. Shipments of FEMA homes
accounted for $57 million of sales in the prior year period. The
decrease in quarter-over-quarter sales of non-FEMA manufactured
housing was 28 percent. "Negative trends in the manufactured
housing industry have persisted, interrupted only temporarily by
the boost that we received last year from FEMA orders," Smith said.
"We are optimistic that part of the recent lull in the California,
Florida and Arizona markets is temporary due to extended marketing
times of existing site-built homes, particularly affecting our
typical retiree market. While sales are down in California and
Florida, our number-one market share position in these states is
growing. "As a builder of affordable housing, we continue to pursue
opportunities in both our traditional market of HUD-code
manufactured housing as well as modular housing," Smith continued.
"Prospects for modular housing in the Gulf Coast area appear to be
particularly attractive, although the rebuilding process has not
yet gained significant momentum. We are working to establish the
appropriate local and regional alliances and reviewing potential
capacity requirements, and feel we are well positioned for this
market. We have recently introduced the 'Trendsetter Homes' name
for our modular operations and products, with a current focus on
residential housing in the Gulf Coast region and military base
housing. We have successfully completed one small barracks project
and are in the bidding or building process of several others." For
the first nine months of fiscal year 2007, sales of recreational
vehicles were down 10 percent to $1.06 billion from $1.18 billion
in fiscal 2006, while manufactured housing sales declined 37
percent to approximately $402 million from $638 million a year ago.
Non-FEMA sales were down 2 percent for the RV Group and 27 percent
for the Housing Group. Fleetwood made a number of changes in its
plant structure during the quarter. Low capacity utilization
numbers in the Housing Group prompted the consolidation of two
plants into one facility in each of Southern California and South
Georgia. While the majority of the production workforce was
retained, the consolidations resulted in a reduction in management
and support staff. Meanwhile, the Company is activating an idle
housing plant and dedicating it to building modular products for
the Gulf Coast area. In addition, travel trailer production was
realigned during the quarter, simplifying the product offerings in
all eight of the U.S. plants to improve labor efficiency, enhance
quality and reduce raw material inventories. "We are cautiously
optimistic about the spring selling season," Smith continued. "It
has the potential to reverse the nearly two years of negative
trends in motor home sales, as customers seem to be more
comfortable with the market environment and our motor home products
are being well accepted. Overall, dealers indicate that their motor
home inventories are at about the right level, or even somewhat
low, which, with increased demand, could also benefit sales. On the
other hand, we expect that industry travel trailer sales will
continue to lag throughout the spring against difficult
year-over-year comparisons and higher dealer inventories. We
anticipate that our Housing Group initiatives will also begin to
bear fruit, but such improvement will likely be at least partially
dependent on the timing of rebuilding efforts in the Southeast.
"The third quarter results, which will be announced on March 8,
2007, are expected to show a significantly greater net loss than
the second quarter, commensurate with the lower revenues," Smith
concluded. "We expect the fourth quarter to begin to reflect the
changes that have been made at Fleetwood during our restructuring.
Our products are improved, our cost structure is lower, our plants
are producing more efficiently and, perhaps most importantly, all
of our divisions are more customer-focused. Our optimism is
tempered by the ongoing uncertainty in all of our markets, which,
so far, has slowed our turnaround progress." About Fleetwood
Fleetwood Enterprises, Inc., through its subsidiaries, 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 lack of assurance that the Company will
regain sustainable profitability in the foreseeable future; the
Company's ability to comply with financial tests and covenants on
existing debt obligations and to obtain future financing needed in
order to execute its business strategies; the volatility of the
Company's stock price; the impact of ongoing weakness in the
manufactured housing market and more recent weakness in the
recreational vehicle market; the effect of global tensions, fuel
prices, interest rates, and other factors on consumer confidence,
which in turn may reduce demand for Fleetwood's products; the
availability and cost of wholesale and retail financing for both
manufactured housing and recreational vehicles; repurchase
agreements with floorplan lenders, which could result in increased
costs; the cyclical and seasonal nature of both the manufactured
housing and recreational vehicle industries; potential increases in
the frequency of product liability, wrongful death, class action,
and other legal actions; expenses and uncertainties associated with
the manufacturing, development and introduction of new products;
the potential for excessive retail inventory levels in the
manufactured housing and recreational vehicle industries; the
highly competitive nature of our industries; and lack of acceptance
of Fleetwood's products. Contact: Lyle Larkin, Vice
President-Treasurer (951) 351-3535 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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