Fleetwood’s Net Loss Narrows
Fleetwood Enterprises Inc. reported today (Aug. 30) that its first fiscal quarter net loss narrowed despite the fact its RV Group’s operating losses expanded.
The company, also a major manufactured home producer, lost $11.1 million during the three months ended July 29, compared with a loss of $31.1 million incurred during the same period year earlier.
However, Fleetwood’s financial performance is improving and Nelson Potter, president and CEO, said, “We currently expect to approach breakeven results during our second fiscal quarter (which will end in late October).”
Fleetwood earned $21 million from building manufactured homes during the May-through-July period, but that was offset by a $17.8 million loss from its RV operations and a $12 million loss from its company-owned manufactured home dealership network.
During the May-through-July portion of 2000, Fleetwood’s RV operations lost $13.3 million.
Fleetwood’s total RV sales revenue declined 16% during its first fiscal quarter to $266.3 million. Its motorhome sales revenue slipped 9% to $134 million while its travel trailer and fifth-wheel sales revenue fell 25% to $107 million. The company’s folding camper sales revenue also was off 10% to $26 million.
However, Fleetwood’s RV business is improving as indicated by bigger order backlogs, Potter said. “As of mid-August, motorhome backlogs were quite a bit ahead of last year’s somewhat depressed levels and travel trailer backlogs were about even with a year ago,” he said.