Fleetwood steadies ship
But sales slump continues for Perth-based manufacturer of Coromal and Windsor caravansThe ASX-listed Fleetwood Corporation has blamed “increased competition from a proliferation of small Australian based caravan manufacturers and from overseas components parts suppliers” for a drop in first-half revenue within its Recreational Vehicles division.
In a report to the sharemarket, 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 $56.7 million (down 18 per cent) for the first six months of the 2014-2015 financial year.??
That resulted in a loss of $4 million for the RV business (compared to a $1 million loss for the previous corresponding period).
Fleetwood, which also supplies housing for the resources and education sectors, reported overall income of $157m for the period (down 18 per cent), with a seven per cent fall in first-half profit to $3.9 million.?? EBIT was up eight per cent to $7.5 million.
Believed to be Australia’s third biggest RV manufacturer, the West Australia company has been losing market share since 2011, when its RV division made a profit of $18.2 million.
Recent initiatives to help regain market share, include the introduction of new, cut-price camper trailer and caravan models under its entry-level Coromal brand.
Fleetwood has also been working hard to plug significant gaps in its national dealer network, recently appointing the Melbourne Caravan Centre in Somerton after a number of years without a Melbourne-based Coromal and Windsor dealer.
The company also said it is in the process of “restructuring operations in the Recreational Vehicles division to improve cost, efficiency and channels to market, aimed at improving competitiveness and increasing market share”.
Meanwhile, the biggest motorhome rental operator in Australia and New Zealand, Tourism Holdings, reported a first-half profit of $5.6 million, or almost double the previous period.
Overall sales were down 2.3 per cent to $109.7 million, as the Auckland-based owner of the Britz, Maui and KEA brands reduced its fleet numbers and cut costs in a challenging market.
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