1
NEWS
Coromal sales continue to lag
Fleetwood loses more money from Coromal and Windsor caravan business despite flood of new modelsThe caravan manufacturing part of Fleetwood Corporation continues to struggle, with the Perth-based company reporting the fourth straight annual loss within the RV division.
The ASX-listed Fleetwood reported that revenue for RV manufacturing in the 2015-16 financial year dropped 13 per cent to $29.6 million, down from $34 million the previous year.
That resulted in a loss of $8.1 million for the RV division, which includes Coromal and Windsor caravans, greater than the $7.6 million loss the previous year.
The drop in earnings comes despite Fleetwood telling its shareholders that there “has been a substantial increase in the order book” since new Coromal and Windsor caravan models were rolled out at major RV shows across Australia in the first half of 2016.
The company said it has strengthened its dealer network with two new dealers in NSW and one in Victoria, although the total number of dealers has only increased by two to 17 in the past two years.
“While this is very encouraging it is not expected that the (RV) business will return to profitability during the first half of the 2017 financial year. However, given how orders are trending the board has confidence in the direction the business is taking,” Fleetwood told its shareholders.
By contrast, Fleetwood’s other RV-related parts and accessories division, which includes Camec accessories and Flexiglass canopies and trays, recorded a five percent increase in revenue to $82.1 million, and 46 per cent rise in profit, to $0.9 million, for the same period. However, that figure doesn’t include an impairment charge of $10.3 million.
Fleetwood, which also supplies housing for the resources and education sectors, reported overall income of $287.3m for the period (up five per cent), with a net profit of $0.7 million.
Investors reacted swiftly to the news, with Fleetwood’s share price down by around five per cent in early trading.
Fleetwood is receiving increasing pressure from the investment community to offload the caravan manufacturing business, with Sandown Capital in June calling for it to be sold or closed to prevent further losses.
Share this article
Written byChris Fincham
See all articlesStay up to dateBecome a caravancampingsales member and get the latest news, reviews and advice straight to your inbox.
Subscribe todayDisclaimer
Please see our Editorial Guidelines & Code of Ethics (including for more information about sponsored content and paid events). The information published on this website is of a general nature only and doesn’t consider your particular circumstances or needs.
Please see our Editorial Guidelines & Code of Ethics (including for more information about sponsored content and paid events). The information published on this website is of a general nature only and doesn’t consider your particular circumstances or needs.
Love every move.
Buy it. Sell it.Love it.
®Contact
Advertise with us
Local marketplaces
International marketplaces
Consent
Download the caravancampingsales app
