Fleetwood announces 11% operating profit jump

East Perth-based mobile accommodation builders and suppliers Fleetwood Corporation Ltd made an operating profit after tax of $20.7 million in the year ended 2005-06, up 11 per cent from the previous financial year.

However, the company's net profit suffered a 21 per cent slump from the 2004-05 result which included a $7.5 million after tax payment from the sale of its six tourist parks to Aspen Group Ltd.

Fleetwood had completed a rationalisation of its operations in June, expanding its Coromal and Windsor caravan manufacturing facilities, developing production facilities in WA and Victoria for manufactured accommodation and relocating its Camec spare parts company in New South Wales to a new warehouse style premises.

An announcement from the company indicated that the rationalisation, as well as a lack of labour availability and higher staff turnover
resulting from tight labour market conditions had a negative impact on revenue, which fell by $8 million, or 3 per cent.

A fully franked final dividend of 12.5 cents per share, representing a 4% increase on last year, will be paid on 31 October 2006.