FLEETWOOD Corporation, manufacturers of the Windsor and Coromal range of caravans, reported another record result for the 2008 financial year.

In its preliminary final report, the company said its financial position "remains strong", with manufacturing operations in South Australia, Northern Territory and Victoria all returning higher profits compared to last year.

Revenue increased by 10 percent to $344 million mainly due to Fleetwood winning significant contracts during the year. Despite cost pressures and labour problems, the company still  improved its operating margins, the report said.

The company reported that activity in the recreational vehicles sector had been "subdued" and revenue had risen by only 3 percent to $192.5 million.

Despite the more difficult trading environment, investment in manufacturing and process control had benefited caravan production at Coromal and Windsor which went some way to offsetting increased costs associated with labour availability.

Fleetwood said labour costs remained a problem, particularly in Western Australia.

The report went on to say Camec, Fleetwood's huge caravan spare parts, accessories and marine equipment manufacturer, had largely overcome difficulties associated with the roll out of its new management information system, which was now providing significant benefits to the organisation.

Difficult trading conditions during the year was responsible for the full-year operating profit being in line with 2007.

High levels of resource activity saw output of transportable homes increase significantly during the year, particularly in the second half of 2008. This trend was expected to continue in 2009 as remote housing shortages were satisfied.

Windsor Caravans moved to a new purpose built production facility in July this year, enabling all production to take place in the one building. The report said this was significantly more efficient than the previous situation where production was spread between two buildings.

Referring to the future, Fleetwood admits that continuing economic uncertainty could affect demand within the recreational vehicle segment.

But it adds: "We are confident this will be more than offset by improved production methods being developed and robust activity levels for manufactured accommodation. Continuing high resource sector demand in Western Australia, South Australia and the Northern Territory should ensure strong levels of activity during the year."

 Although demand for park homes had been affected by a slowing housing market there were early indications of improved activity levels.

"Any park home production shortfall is being offset by strong demand for transportable homes for remote areas.

"Fleetwood's enhanced production capacity and continuing high levels of demand along with its balance sheet strength places the company in an ideal position to further expand the group's activities as opportunities arise," the reported added.

A fully franked final dividend of 15 cents a share will be paid on 30 September, 2008, representing a 7 percent increase on last year. In conjunction with the final dividend, a fully franked special dividend of 20 cents a share will also be paid on 30 September.

Subject to ongoing profitability, acquisition opportunities and market conditions, special dividends of 20 cents a share will be paid with each interim and final dividend paid in the next two years i.e. further special dividends of 80 cents a share in addition to the special dividend to be paid on 30 September 2008.

BACK TO CARAVANNING NEWS MAIN PAGE

SEND YOUR COMMENTS OR
STORY IDEAS TO
CARAVANNING NEWS