FLEETWOOD Corporation, builders of Coromal and Windsor caravans, has
suffered at the hands of smaller Australian caravan manufacturers, it has
been revealed.
The Perth-based company made the admission in its recently released
results for the half-year ending December 2014.
"Increased competition from a proliferation of small Australian-based
caravan manufacturers and from overseas component parts suppliers has
impacted sales," chairman Michael Hardy said in his interim report.
Figures showed that revenue for Fleetwood's recreational vehicles division
had fallen from $69 million in the half-year ending December 2013 to $56.7
million.
Mr Hardy said the company had now initiated "several projects" aimed at
increasing the division's competitiveness.
These targeted business structure and cost efficiency as well as
developing better channels to the market.
The RV division comprises caravan parts and accessories company Camec,
Fleetwood RV, commercial vehicle canopies and trays supplier Flexiglass
and ute trays and accessories company Bobar.
Mr Hardy said there had also been subdued sales of its fibreglass canopies
for light commercial vehicles.
After-tax profit falls 7
percent
to $3.8 million
|
Fleetwood's latest half-year figures show after-tax profit fell seven
percent to $3.8 million on the back of $156.9 million in revenue.
This was an 18 percent slump compared with the previous corresponding
period.
Fleetwood reported that strong earnings from education and affordable
housing had offset subdued market conditions in resources and recreational
vehicles during the period.
Its accommodation division had seen strong revenue growth in the eastern
states, with volume from the Victorian Transfer Programme "significantly"
higher than in previous years.
The programme involves relocation, storage and refurbishment of classrooms
for the Education Department.
"There has been significant consolidation of caravan park ownership in the
eastern states in the last two years and Fleetwood has commenced supply to
major operators in the market," Mr Hardy said.
Referring to the future, Fleetwood said demand from the education sector
remained strong with second-half earnings expected to be underpinned by
classroom builds and relocation of existing ones to accommodate shifting
student numbers.
Revenue from affordable housing would probably rise.
Because of trading conditions and capital recently invested in major
projects, the directors decided not to declare an interim dividend.
