Friday, November 04, 2005

Fleetwood Reports Preliminary Revenues for Second Quarter Fiscal 2006

Fleetwood Enterprises announced its preliminary sales for the second quarter of
fiscal 2006, which ended on October 30, 2005.

Recreational vehicle sales for the second quarter were down 13 percent to
$392 million, compared to $450 million a year ago. Motor home sales were
$249 million, down from $302 million in the prior year, an 18 percent
decrease. Travel trailer sales were $117 million, reflecting a 2 percent
decline from the prior year's sales of $120 million. Folding trailer sales
were down 10 percent to $26 million from $28 million last year.

"The RV market, particularly in motor homes, is appreciably softer than
last year," Fleetwood's President and CEO Elden L. Smith said. "However, our
motor home sales at recent retail shows have been encouraging. We continue to
resist discounting on our 2006 products, but our major motor home competitors
have recently introduced substantial product discounts and sales incentives,
leading us to anticipate that competitive pressure will be significant in the
coming months. Our travel trailer revenues included $30 million of FEMA-unit
sales for temporary shelter as part of the disaster relief effort in the Gulf
States. The majority of the initial order for 7,500 FEMA units will be
shipped during our third quarter. In addition, we have recently received an
order for 3,100 more FEMA units that will be produced in our third and fourth
quarters. Of course, while responding to this national emergency as fully as
we are capable, we are continuing to meet the ongoing needs of our existing
dealers for recreational travel trailer product."

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