Fleetwood Announces Restructuring of Manufacturing Operations
November 24 2008 - 10:30AM
PR Newswire (US)
- Six Housing Group plants and two travel trailer plants to be
consolidated into existing facilities - RIVERSIDE, Calif., Nov. 24
/PRNewswire-FirstCall/ -- Fleetwood Enterprises, Inc. (NYSE:FLE)
announced today the consolidation of several manufacturing
facilities in coordinated actions designed to match current
production to market demand and improve capacity utilization. The
Company has notified its associates of the closures at its
manufactured housing plants in Woodland, Calif.; Auburndale, Fla.;
Willacoochee, Ga.; Benton, Ky.; and Pembroke, N.C. All of these
plants will work through the orders they currently have and will
begin transitioning production to some of the remaining 13
Fleetwood Housing Group facilities. They are expected to close
within approximately 60 days. The Company's Trendsetter Homes plant
in Douglas, Ga., which is one of two producing modular housing,
will also be closed, effective immediately. Impending closure
announcements were also made at Fleetwood's travel trailer
manufacturing centers in Crawfordsville, Ind. and Mexicali, Mexico.
After the transition, all of the Company's travel trailers and
fifth wheels will be produced in its three existing plants in Ohio
and Oregon. "In the current economic climate, it is essential that
we match our production to demand," said Elden L. Smith,
Fleetwood's president and chief executive officer. "With 13
remaining housing plants and three travel trailer plants, we can
continue to service all our existing dealers and the markets in
which we currently operate. As difficult as it is to make decisions
like these that impact the lives of our valued associates, we must
position Fleetwood to operate profitably under the present and
foreseeable business circumstances. We believe that these moves, in
conjunction with the previously announced consolidation of two
motor home plants, other significant cost-saving measures, and our
proposed balance sheet restructuring, will enable us to weather the
current economic crisis." The Company will work to place a limited
number of associates within the organization, but it is expected
that most of the jobs will be permanently lost. Assistance will be
provided to all affected associates in cooperation with state and
local agencies. Further information about the restructuring and its
expected impact on our financial results will be provided in
tomorrow's results release and investor call. 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, factory-built 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 those regarding the production level needed
for breakeven operations, 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 significant demands
on our liquidity while current economic and credit conditions are
severely affecting our operations, including the potential
repurchase of 5% debentures in December 2008 if we do not have
sufficient shares of common stock to satisfy the obligation to
repurchase the remaining amount of the 5% debentures outstanding;
the lack of assurance that we will regain sustainable profitability
in the foreseeable future; our potential inability to decrease our
operating losses and negative cash flow; the effect of ongoing
weakness in both the manufactured housing and recreational vehicle
markets, especially the recreational vehicle market which has
deteriorated sharply in recent months; the effect of a decline in
home equity values, volatile fuel prices and interest rates, global
tensions, employment trends, stock market performance, credit
crisis, availability of financing generally, and other factors that
can and have had a negative impact on consumer confidence, and
which 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 and future debt obligations; our ability to obtain, on
reasonable terms if at all, the financing we will need in the
future to execute our business strategies; the volatility of our
stock price and the risk of potential delisting from the NYSE;
potential dilution associated with future equity or equity-linked
financings we may undertake to raise additional capital and the
risk that the equity pricing may not be favorable; the cyclical and
seasonal nature of both the manufactured housing and recreational
vehicle industries; the increasing costs of component parts and
commodities that we may be unable to recoup in our product prices;
repurchase agreements with floorplan lenders, which we currently
expect could result in increased costs due to the deteriorated
market conditions; 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 and dealers' desire to reduce inventory
levels in the manufactured housing and recreational vehicle
industries; the effect on our sales, margins and market share from
aggressive discounting by competitors; potential increases in the
frequency and size of product liability, wrongful death, class
action, and other legal actions; and the highly competitive nature
of our industries and changes in our competitive landscape.
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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