Fleetwood Reports Record First Quarter Sales
29 July 1998
Fleetwood Reports Record First Quarter Sales
RIVERSIDE, Calif., July 29 -- Fleetwood Enterprises, Inc.
, a leading producer of manufactured housing and recreational
vehicles, today announced preliminary sales for the first quarter which ended
July 26, 1998. Sales for the thirteen-week period rose 15 percent to
approximately $838 million, the highest first quarter sales ever recorded by
the Company, compared to $728.4 million for the corresponding quarter last
year. Excellent sales growth was experienced by both of the Company's core
manufacturing businesses. In addition, Fleetwood recorded for the first time
sales from its recently formed manufactured housing retail division.
Recreational vehicle sales were particularly strong in the July quarter,
rising 22 percent to a first quarter record $429 million. The healthy
consumer demand currently being experienced by the RV industry led to solid
sales gains from all three of Fleetwood's RV divisions. Motor home sales
increased 25 percent to $260 million, which represented the highest first
quarter revenues ever recorded by the motor home division. Travel trailer
sales were up 17 percent to $140 million, and the Company's folding trailer
division posted record first quarter sales of $29 million, 21 percent ahead of
last year's similar period.
Fleetwood President Nelson W. Potter said, "The RV market in 1998 is
somewhat stronger than we expected, and Fleetwood has been gaining market
share in upscale motor homes, travel trailers and folding trailers. We
attribute the strong RV market principally to the healthy economy and high
levels of consumer confidence. These factors have been bolstered by favorable
demographic factors which should benefit the industry for many years to come."
Manufactured housing revenues in the first quarter rose eight percent to
approximately $397 million, the highest quarterly housing sales on record,
compared to $366.6 million posted in last year's similar period. Stronger
sales in the central and eastern regions led to the improved housing volume.
Potter commented that, "Fleetwood's sales gains in manufactured housing
are being fueled by a rising market and market share gains. The latest
shipment statistics available show that the industry is up approximately 3.5
percent in the first five months of calendar 1998 compared to the same period
in 1997. During the same time period, Fleetwood shipments are 6.6 percent
ahead," Potter said.
The Company's retail housing division posted first quarter sales of $2
million generated from two sales centers owned and operated during the first
fiscal quarter. Unlike Fleetwood's manufacturing businesses, the retail
division follows a calendar quarter accounting period. The first fiscal
quarter does not include any sales activity from five retail businesses
recently acquired by Fleetwood in late June and early July, although the
investments in these acquired retail operations will be reflected in the
Company's July balance sheet. Fleetwood's previously announced acquisition of
Home USA, Inc., the nation's largest independent retailer of manufactured
homes, is scheduled to close August 10, 1998. With the completion of the
HomeUSA acquisition, which will add 68 retail locations, the Company will have
a total of 105 retail centers nationwide.
Fleetwood's supply operations contributed revenues of about $10 million in
the quarter compared to $11.1 million in last year's first quarter.
Final sales and earnings for the quarter will be reported by the Company
in about four weeks.