11/02/2013 - 15:35

Fleetwood expecting turnaround after tough half-year

11/02/2013 - 15:35

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Transportable housing manufacturer Fleetwood Corporation says it expects an improved result in the second half of the financial year after confirming soft conditions in its key markets would result in a significant revenue hit.  

Fleetwood first flagged the possibility of a weaker FY13 at its annual meeting last year, saying uncertain conditions and costs associated with restructuring efforts would result in a significantly weaker result.

Ahead of its half-year results release later this month, Fleetwood said it expected revenue for the six months to December 31 would come in at $140 million, down from $194 million the previous half year.

EBIT for the same period is expected to come in at $13 million, down from $41 million in the first half of FY2012.

The company said it expected a new agreement with Rio Tinto and strong manufacturing activity would contribute to an improved result over the second half of the financial year.

Fleetwood’s caravan division, however, is still expected to be adversely affected by falling consumer sentiment.

“However with caravan manufacturing consolidated in WA the division has a more competitive business structure and cost base, which will improve financial results and facilitate profitable growth,” Fleetwood said in a statement.

“Results for the 2014 financial year will benefit from the operational phases of the Gladstone and Osprey villages, improved occupancy at Searipple village and the consolidation changes in the recreational vehicles division.”

Fleetwood said it expected to declare a fully franked interim dividend of 30 cents per share.

At close of trade today Fleetwood shares were down 3 per cent, trading at $9.74. 

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