Another blow for Fleetwood RV
Manufacturer of Coromal and Windsor caravans reports third straight annual loss within RV divisionThe ASX-listed Fleetwood Corporation has blamed “poor performance in caravan manufacturing” for a significant drop in annual revenue within its Recreational Vehicles division.
In a report to shareholders Fleetwood’s RV business, which includes Windsor and Coromal caravans and camper trailers, Camec accessories and Flexiglass and Bocar ute trays and canopies, recorded revenue of $112.2 million (down 18 per cent) for the 2014-2015 financial year.
That resulted in a loss of $7 million for the RV business, compared to a $2.2 million loss for the previous corresponding period.
Fleetwood, which also supplies housing for the resources and education sectors, reported overall income of $301.9m for the period (down 18 per cent), with a 30 per cent fall in net profit to $3.9 million.
Believed to still be among the top-five biggest-selling Australian RV manufacturers, Fleetwood has been losing market share since 2011, when its RV division made a profit of $18.2 million.
That’s despite recent changes and a restructure of its RV division, which has included the introduction of new, cut-price models, the appointment of a new Melbourne dealer and changes to senior management.
Looking ahead, Fleetwood said any ”turnaround (is) expected to take time” with the Perth-based builder focussing "on manufacturing efficiency and fixed costs”.
Investors reacted strongly to the news, with Fleetwood’s share price down as much as 15 per cent in early trading.
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