Transportable housing and recreational vehicles manufacturer Fleetwood Corporation has flagged a weak performance in the second half of the current financial year.
Fleetwood said its earnings before interest and tax would come in at around $3 million for the second half of the year, after its EBIT in the first six months of 2013-14 was $7 million.
“Consumer confidence in some of Fleetwood’s markets still remains weak,” the company said in a statement to the ASX.
“Strong demand is being experienced in the education sector in Western Australia, Victoria and Queensland.
“However with lower occupancy at Searipple and poor performance in the resource sector it is expected that second half operational EBIT will be approximately $3 million.”
Fleetwood is yet to begin receiving revenue from its Osprey Village accommodation camp, which is slated to generate a government-underwritten earnings stream not dependent on village occupancy.
Fleetwood will operate the village for the Department of Housing for 15 years.
However, Fleetwood today also announced a fresh contract with Lang O’Rourke, to build and rent a 200-person fly camp and a 350-bed construction camp at Combabula in Queensland.
The minimum rental term for the camp is 20 months, Fleetwood said.
The company also said its search for a managing director was well advanced, with an appointment expected to be announced next month.
At close of trade today, Fleetwood’s shares were up 3.1 per cent, at $2.33.
