Fleetwood posts record profit of $51m

Accomodation and vehicle parts manufacturer Fleetwood Corporation Ltd has posted a 27 per cent rise in earnings before interest and tax of a record $51 million for the 2008 financial year.

Revenue for the East Perth-based company rose 10 per cent from the previous year to $344 million driven by the securing of a number of significant contracts.

Fleetwood's accommodation sector recorded the biggest increase in revenue, up 18 per cent to $151 million while EBIT was up 62 per cent to $33 million.

Meanwhile revenue for its vehicle arm rose three per cent to $192.5 million while EBIT was down 11 per cent to $19.5 million.

Overall the company was able to improve its operating margins despite cost pressures and labour availability issues.

The EBITDA margin increased from 15.6 per cent o 18.1 per cent while EBIT margin rose two per cent to 14.8 per cent.

Operating cash flow rose to a record $60 million.

The directors declared a fully franked dividend of 15 cents per share, up seven percent on the previous year.

"While a continuation of the current economic uncertainty may have some effect on demand within the recreational vehicle segment, we are confident this will be more than offset by improved production methods being developed and robust activity levels for manufactured accommodation," Fleetwood said in a statement.

"Although demand for park homes has been affected by a slowing housing market there are early indications of improved activity levels. Any park home production shortfall is being offset by strong demand for transportable homes."