Fleetwood Reports Record Third Quarter and Nine-Month Sales
2 February 2000
Fleetwood Reports Record Third Quarter and Nine-Month Sales
RIVERSIDE, Calif., Feb. 2 -- Fleetwood Enterprises, Inc.
, the nation's leading manufacturer of recreational vehicles and a
leading producer and retailer of manufactured housing, today announced
preliminary sales for the third quarter and nine months ended January 30,
2000.
Healthy demand for recreational vehicle products led to record sales of
approximately $850 million for the third quarter, six percent ahead of the
similar period last year. Nine-month sales reached $2.82 billion, also an
all-time high for the Company, and 11 percent ahead of last year's comparable
period.
With all three RV divisions posting record third quarter sales,
recreational vehicle sales rose 18 percent to a third quarter high of
$434 million. Motor home sales of $274 million were 21 percent ahead of the
comparable quarter last year on improved sales of the Company's popular Class
A products. Sales of towable products continued at a robust pace, with travel
trailer sales rising 14 percent to $134 million and folding trailer sales up
six percent to $26 million.
RV sales for the nine-month period reached a new high of $1.42 billion,
with all product segments experiencing solid growth. Motor home sales rose
19 percent to a record $891 million, primarily due to strong demand for larger
Class A models. Travel trailer sales also reached a new nine-month high,
rising 10 percent to $433 million. The Company's folding trailer division
posted record sales of $92 million for the nine-month period, an increase of
seven percent over last year's similar period.
Fleetwood President Nelson W. Potter said, "In calendar 1999, the RV
industry experienced its best year since 1978, with factory shipments rising
nearly 10 percent over 1998. The combination of a healthy economy and high
consumer confidence, supported by extremely favorable long-term demographic
trends, has resulted in an excellent market environment for recreational
vehicles."
Manufactured housing revenues in the third quarter declined five percent
to approximately $405 million compared to $427 million a year ago. Fiscal
2000 revenues include net sales of $261 million from manufacturing operations
and $144 million from the Company's retail business, which commenced operation
about 18 months ago. Gross manufacturing revenues, including intercompany
sales of $79 million to Company-owned retail centers, totaled $340 million in
the third quarter, eight percent below comparable revenues last year.
For the nine-month period, manufactured housing revenues rose six percent
to $1.36 billion compared to $1.28 billion in the previous year. Fiscal 2000
revenues include net sales of $900 million from manufacturing operations and
$464 million from the Company's retail sales centers. Gross manufacturing
revenues, including intercompany sales of $236 million to Company-owned retail
stores, declined four percent to $1.14 billion for the nine months.
Potter said, "For several quarters, the manufactured housing industry has
been working its way through excessive inventories at the retail level. This
has been compounded by the fact that retail demand has softened in recent
months with the rise in interest rates and more stringent lending standards.
We remain enthusiastic and optimistic about the longer-term attractive
prospects for the industry, despite the current challenges," Potter concluded.
Fleetwood's supply operations contributed revenues of $11 million and
$38 million, respectively, for the third quarter and nine-month period.
Final sales and earnings for the third quarter and first nine months will
be reported by the Company in about four weeks.
This press release contains certain forward-looking statements and
information based on the beliefs of the Company's management as well as
assumptions made by, and information currently available to, the Company's
management. Such statements reflect the current views of the Company with
respect to future events and are subject to certain risks, uncertainties, and
assumptions, including risk factors identified in the Company's SEC filings.
Actual results, events and performance may differ materially. Readers are
cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date hereof.