Fleetwood Reports Preliminary Revenues for Fiscal 2008 First Quarter
August 02 2007 - 7:30AM
PR Newswire (US)
RIVERSIDE, Calif., Aug. 2 /PRNewswire-FirstCall/ -- Fleetwood
Enterprises, Inc. (NYSE:FLE) announced today preliminary sales for
the first quarter of fiscal 2008, ended July 29, 2007. Revenues for
the quarter were approximately $512 million, a 3 percent decrease
from $530 million last year. Quarterly sales for recreational
vehicles declined 3 percent, while manufactured housing revenues
were off by 1 percent. Recreational vehicle sales for the first
quarter were approximately $360 million, down slightly from $371
million a year ago. Motor home revenues improved by 22 percent to
about $274 million from $225 million in the same period a year ago.
Travel trailer sales were down 48 percent to approximately $64
million compared with $122 million in the prior year, while folding
trailer sales were off 8 percent to $22 million from $24 million in
last year's first quarter. "Motor home sales are experiencing a
boost from our 2008 model year products, which include several
diesel models that have recently gone through life-cycle changes
and our relatively new value-priced Class A and Class C gasoline
products," said Elden L. Smith, president and chief executive
officer. "Travel trailer revenues have been impacted by the
previously announced closure of five plants and a conservative
posture by dealers, who continue to adjust their inventories
downward in the face of market softness. We are very pleased with
the new look of our 2008 trailers, and our dealers are reacting
positively. We are especially encouraged that much of the praise is
for our core Prowler, Wilderness and Terry brands." Preliminary
first quarter manufactured housing sales of $144 million were off 1
percent from $146 million last year. "While manufactured housing
sales are still down from the prior year, we are encouraged by the
relatively small decline," Smith said. "A continuation of current
trends would indicate that we should see a positive revenue
comparison in the second quarter. Backlogs have been higher year
over year for several months, and we are increasing production
rates in selected areas, although the retirement markets in
California, Arizona and Florida continue to lag. "We expect to
report near-breakeven operating results (before interest and taxes)
for our first quarter, which compares very favorably to last year,"
Smith continued. "We have made significant progress in improving
our products, our cost structure and our organization. I am
confident we will achieve further improvement in our financial
results as we go forward." 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, including, but not limited to, achieving a sales
increase in manufactured housing if current trends continue,
expectation of near-breakeven operating results for the first
quarter, and continuation of improvement in financial results,
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 we will regain
sustainable profitability in the foreseeable future; the effect 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 our
products, particularly recreational vehicles; the availability and
cost of wholesale and retail financing for both manufactured
housing and recreational vehicles; our ability to comply with
financial tests and covenants on existing debt obligations; our
ability to obtain the financing we will need in the future to
execute our business strategies; the cyclical and seasonal nature
of both the manufactured housing and recreational vehicle
industries; expenses and uncertainties associated with the entry
into new business segments or the manufacturing, development, and
introduction of new products; the potential for excessive retail
inventory levels in the manufactured housing and recreational
vehicle industries; the volatility of our stock price; repurchase
agreements with floorplan lenders, which could result in increased
costs; potential increases in the frequency of product liability,
wrongful death, class action, and other legal actions; and the
highly competitive nature of our industries. 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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