Sales falter in competitive market

Fleetwood moves to raise appeal of its caravans

By Dennis Amor
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FLEETWOOD is battling to increase its share of the caravan market, its annual report reveals.

Sales of its Coromal and Windsor range of caravans have been falling in the competitive market and initiatives have been introduced to address "performance issues" in production.

But these have yet to show improved profitability, managing director Brad Denison said in the report released yesterday (Sept 30).

"A fresh approach to product design is expected to increase consumer appeal for Fleetwood caravans, while allowing for manufacturing economies to be realised," he added.

The report shows that revenue from Fleetwood Corporation's RV division plummeted 18 percent in the last financial year, from $136.5 million to $112.2 million.

Operating earnings before interest and tax fell 229.7 percent.

The RV division also comprises Camec (caravan parts and accessories), Flexiglass (commercial vehicles canopies and trays) and Bocar (ute trays and accessories).

It recently increased its dealership presence in the Victorian market and is now exploring opportunities in New South Wales.

While Fleetwood's operations in the education and affordable housing sectors were experiencing strong demand, profits would be be offset by weakness in caravan manufacturing and mining services in the first half of 2016, Mr Denison said.

Fleetwood's annual general meeting will be held at the Perth Convention and Exhibition Centre on November 27.

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