Windsor and Coromal sales slump
Fleetwood Corporation reports significant drop in sales of Windsor and Coromal caravansWest Australia-based Fleetwood Corporation, which manufactures Coromal and Windsor caravans, has blamed "soft trading conditions" on a big drop in sales within its Recreational Vehicles division for the 2011-12 financial year.
In a report listed on the ASX, the recreational vehicles part of the business, which also includes Camec accessories and Flexiglass fibreglass canopies, recorded annual revenue of $157.7 million (down 9.3 per cent), with profit before interest and tax of $4.1 million (down 77.6 per cent).
According to the report, "demand for recreational vehicles was affected by the decline in consumer sentiment, whereas demand for canopies and trays was affected by the interruption to supply of commercial vehicles to Australia caused by natural disasters in Asia".
Fleetwood Corporation reported overall revenue was down by 12.7 percent to $407.4 million, with operating profit up by 4 per cent to $53.2 million.
Offsetting the weaker caravan sales was a good performance from Fleetwood's manufactured accomodation division, which benefitted from strong demand in the Queensland and West Australian mining and resources sector.
Although revenue for Fleetwood's manufactured accomodation division was down by 14.7 per cent to $249.4 million, profit before interest and tax was up 24.6 percent to $76.2 million.
The result is in stark constrast to the 2010/2011 financial year, in which Fleetwood reported a 12.3 per cent increase in revenue and "continued strong demand" within its recreational vehicles division.
In 2009 the company was forced to cut its RV production by half following the effects of the Global Financial Crisis.
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