Fleetwood Reports Preliminary Revenues for Second Quarter 2005
October 28 2004 - 7:18PM
PR Newswire (US)
Fleetwood Reports Preliminary Revenues for Second Quarter 2005
RIVERSIDE, Calif., Oct. 28 /PRNewswire-FirstCall/ -- Fleetwood
Enterprises, Inc. (NYSE:FLE), one of the nation's leading
manufacturers of recreational vehicles and a leading producer and
retailer of manufactured housing, announced today its preliminary
sales for the second quarter of fiscal 2005, which ended on October
24, 2004. Company revenues improved 6 percent in the second quarter
to approximately $713 million compared with $675 million last year,
due to sales increases in the Housing Group's wholesale division
and the RV Group's motor home division. For the first six months,
sales increased 9 percent to $1.44 billion compared with $1.32
billion in fiscal 2004. Overall recreational vehicle sales for the
second quarter were flat compared to a year ago at $450 million.
Motor home sales reached $302 million, a 10 percent increase over
the prior year's second quarter. Sales of towables declined 16
percent to $149 million from $176 million in the prior year.
Towable sales include revenues of the recently consolidated travel
and folding trailer operations, which were previously reported
separately. Manufactured housing sales in the second quarter
increased 14 percent to approximately $245 million compared with
$214 million a year ago. Housing revenues included $214 million of
wholesale factory sales, and $65 million of retail sales, before
elimination of intercompany sales of $34 million. Wholesale grew 18
percent and retail declined 7 percent compared with last year's
$181 million and $70 million, respectively, before elimination of
intercompany sales of $37 million. "We are pleased to report our
fourth straight quarter of growth in Housing Group sales and
continued growth in revenues for the motor home division,"
Fleetwood's President and CEO Edward B. Caudill said. "We achieved
solid top-line results in these segments despite the negative
impact of the hurricanes and related extreme weather conditions in
the Southeast on both of our industries, which was somewhat offset
by emergency-related orders for manufactured homes and travel
trailers. "The RV industry has recently seen some signs of retail
slowing," Caudill continued. "We think that this is a temporary
condition that is partly weather-related and partly the result of
weakened consumer confidence. We continue to believe the
fundamentals of the RV industry are sound, and are backed by
powerful demographic trends. To manage the short-term fluctuation,
we offered selected incentives to reduce our finished goods
inventory. Going forward, we will modify our production as
necessary to correspond to wholesale and retail demand. "Despite
these challenges during our second quarter, we still expect to
record a net profit that will be an improvement over the prior
year," Caudill concluded. "However, we now believe the earnings
improvement will be less than previously anticipated." Fleetwood
will file its second quarter Form 10-Q after market close on
Friday, December 3, 2004, and will hold its conference call to
discuss earnings on Monday, December 6, 2004. The Company confirms
its intent to continue to defer distributions on its 6% convertible
subordinated debentures, which would otherwise be due in
mid-November. About Fleetwood Fleetwood Enterprises, Inc., is one
of the nation's largest producers of recreational vehicles, from
motor homes to travel and folding trailers, and is a leader in the
building, retailing and financing of 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 and manufactured housing plants, retail home centers, 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; and the
Company's ability to obtain financing needed in order to execute
its business strategies. For more information please 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. 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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