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Cost controls, asset sales help Fleetwood post profit

June 27, 2008|From the Associated Press

Fleetwood Enterprises Inc. said Thursday that cost controls and asset sales helped the maker of recreational vehicles and modular homes swing to a quarterly profit despite continued economic weakness.

Net income for Fleetwood's fiscal fourth quarter ended April 27 totaled $18.9 million, or 26 cents a share, compared with a loss of $39.2 million, or 61 cents, a year earlier. Excluding items, profit from continuing operations totaled 30 cents a share, up from a loss of 50 cents last year.

Revenue declined 26% to $363.5 million as revenue from the sale of RVs dropped more than $110 million to $257.3 million and its housing unit dipped about $10 million to $106.3 million.

Analysts surveyed by Thomson Financial expected a loss of 13 cents a share on revenue of $383.5 million.

High fuel prices continued to hurt its motor home business, Fleetwood said, and the manufactured-housing industry shows no immediate sign of a turnaround.

"We continue to battle stiff competition from foreclosed site-built homes, as well as the turmoil in the mortgage industry and sluggishness in our traditional retiree market," said Elden L. Smith, Fleetwood's president and chief executive.

For fiscal 2008, losses narrowed sharply to $1 million, or 2 cents a share, from $90 million, or $1.41, a year earlier. Revenue slipped 14% to $1.66 billion.

Shares of Riverside-based Fleetwood fell 16 cents Thursday to $2.97.

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