Sunday, December 07, 2008

Fleetwood RV Struggling but Hopeful

DailBulletin.com
Fleetwood Enterprises Inc.'s stock dropped to a new low last week: 12 cents per share.

The battered recreational vehicle maker based in Riverside showed off its electric-diesel hybrid RVs at the National RV Trade Show last week in Louisville, Ky., but it's going to take more than green technology breakthroughs to get this company back in the black.

Fleetwood said it can fund operations for the time being because of its secured line of credit and an operating plan, according to public documents filed Thursday.

The operating plan assumes the company can pay off certain debt with its common stock, maintain compliance with a secured credit line, and that Fleetwood's dealer network continues to receive wholesale floor-plan financing.

Investor confidence has eroded Fleetwood's market capitalization from hundreds of millions of dollars down to a mere $15 million.

As of November, the company had suffered more than eight consecutive years of losses totalling almost $900million. Sales were slashed in half during the quarter ending Oct. 26, dropping 54percent.

As a result, Fleetwood has laid off hundreds of workers at local plants and manufacturing operations nationwide.

The company announced in late November it will close eight plants in California, Florida, Georgia, Kentucky and North Carolina. Fleetwood executives could not be reached Friday for comment.
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