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FLEETWOOD ANNOUNCES SECOND QUARTER EARNINGS

 RIVERSIDE, Calif., Nov. 22 /PRNewswire/ -- Fleetwood Enterprises Inc., the nation's leading producer of manufactured housing and recreational vehicles, today announced earnings for the second quarter and first half of fiscal 1994. Net income for the three months ended Oct. 24, 1993, increased to $17,075,000, or 37 cents per share, compared to $15,595,000, or 34 cents per share, recorded in last year's second quarter. Earnings for the first six months were $30,701,000, or 67 cents per share, after recording a one-time charge of $1,500,000, or 3 cents per share, in the first quarter to reflect a change in accounting for income taxes under Statement of Financial Accounting Standards No. 109. This compares to $30,068,000, or 66 cents per share, for last year's first half. Prior year earnings per share for the second quarter and first six months have been restated to reflect a 2-for-1 stock split which occurred in last year's fourth quarter.
 Revenues for the October quarter rose 20 percent to a record $567.4 million, up from $473.3 million a year ago, primarily on the strength of higher manufactured housing sales. For the first six months of fiscal 1994, consolidated revenues increased 17 percent to $1.10 billion, the highest first-half revenues in the company's history. This compares to $943.8 million for last year's similar period.
 Commenting on the results, Fleetwood President Glenn Kummer said, "It is gratifying to be able to report higher earnings considering last year's very strong second quarter. This year's improvement is largely being driven by robust sales from our housing group which continues to benefit from the strong recovery in the manufactured housing market. Our profit gains in housing were partially offset by reduced earnings from the recreational vehicle group which continues to experience margin pressure in a very competitive pricing environment. Also, our European RV operation incurred losses in the first and second quarters which contributed to the RV group decline," Kummer said.
 Housing group revenues climbed to an all-time high in the second quarter and for the first half as well. Sales for the quarter jumped 33 percent to $260.5 million compared to last year's $196.6 million. Unit volume rose 25 percent in the October quarter to 14,468 homes. For the first six months of fiscal 1994, housing revenues increased 30 percent to $488.2 million vs. $376.7 million in last year's comparable period.
 Kummer commented on the housing gains saying, "With the new plant capacity added since last year, we have been able to keep pace with the strong growth occurring in the manufactured housing industry. Industry volume is up 23 percent in the first nine months of calendar 1993 which corresponds to Fleetwood's unit growth over the same time period," Kummer said.
 Recreational vehicle revenues in the second quarter were up 11 percent to $291.4 million compared to $263.6 million a year ago. The increase largely reflects an upturn in domestic motor home sales which rose 14 percent to $166.3 million on a 10 percent rise in unit volume to 3,652 units. In the towables category, the folding trailer division achieved record sales of $20.7 million, 28 percent ahead of last year's second period. Shipments were up 30 percent to 5,327 units. Fleetwood's travel trailer division experienced a slight 2 percent sales decline to $99.5 million on a 3 percent drop in unit volume to 7,824 units. Last year's second quarter benefited from the sale of approximately 850 travel trailer units shipped to the areas affected by Hurricane Andrew. The company's European RV operation recorded revenues of $4.8 million in the second quarter, but made no contribution to revenues a year ago.
 First half revenues for the RV group were $585.7 million, 8 percent ahead of last year's $542.8 million. Sales gains were recorded by the motor home and folding trailer divisions to lead the RV group. Domestic motor homes sales rose 6 percent to $327.7 million while folding trailer revenues surged 35 percent to a record $40.6 million. The company's travel trailer division posted flat revenues of $204.8 million, a good performance compared to last year's unusually strong first half. European RV sales for the first six months of fiscal 1994 were $12.6 million.
 Kummer commented on the RV group by saying, "Encouragingly, the recreational vehicle business seemed to get stronger as the quarter progressed, and backlogs for this time of year are unusually healthy. We feel quite positive about the RV sales outlook for the next several months based upon favorable industry trends and dealers' enthusiasm for our recently introduced 1994 models. In spite of this, we continue to see very competitive pricing in the market and this will have an effect on profit margins as we go forward," Kummer concluded.
 Fleetwood's supply and finance operations together contributed revenues of $15.5 million for the quarter and $31.0 million for the first half of fiscal 1994. This compares with $13.1 million and $24.3 million, respectively, last year.
 FLEETWOOD ENTERPRISES INC.
 Consolidated Summaries of Earnings
 (Unaudited)
 13 Weeks Ended
 Oct. 24, 1993 Oct. 25, 1992
 Operating revenues $567,445,000 $473,283,000
 Income before provision
 for income taxes and cumulative
 effect of accounting change $28,695,000 $25,319,000
 Provision for income taxes (12,007,000) (9,724,000)
 Minority interest in
 net loss of subsidiary 387,000 ---
 Income before cumulative
 effect of accounting change 17,075,000 15,595,000
 Cumulative effect of change
 in accounting for income taxes --- ---
 Net income $17,075,000 $15,595,000
 Income per share before
 cumulative effect of
 accounting change $.37 $.34
 Cumulative effect of change
 in accounting for income taxes --- ---
 Net income per common and
 equivalent share $.37 $.34
 Common and equivalent shares
 outstanding 46,208,000 45,836,000
 26 Weeks Ended
 Oct. 24, 1993 Oct. 25, 1992
 Operating revenues $1,104,872,000 $943,822,000
 Income before provision
 for income taxes and
 cumulative effect of
 accounting change $53,009,000 $48,630,000
 Provision for income taxes (21,388,000) (18,562,000)
 Minority interest in
 net loss of subsidiary 580,000 ---
 Income before cumulative
 effect of accounting change 32,201,000 30,068,000
 Cumulative effect of change
 in accounting for income taxes (1,500,000) ---
 Net income $30,701,000 $30,068,000
 Income per share before
 cumulative effect of
 accounting change $.70 $.66
 Cumulative effect of change
 in accounting for income taxes (.03) ---
 Net income per common and
 equivalent share $.67 $.66
 Common and equivalent shares
 outstanding 46,099,000 45,822,000
 Note: Prior-year earnings per share and outstanding shares have been restated to reflect 2-for-1 stock split effected in the fourth quarter of fiscal 1993.
 -0- 11/22/93
 /CONTACT: Paul M. Bingham, 909-351-3504, or Lyle N. Larkin, 909-351-3535, both of Fleetwood/


CO: Fleetwood Enterprises Inc. ST: California IN: CST AUT SU: ERN

JB-MF -- LA015 -- 6773 11/22/93 10:54 EST
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Date:Nov 22, 1993
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