Fleetwood Corp throttles back caravan production

By DENNIS AMOR

PERTH-based Fleetwood Corporation, which last year enjoyed a record profit, has cut caravan production by half.

The drastic move comes in the face of falling orders as prospective caravan buyers, particularly self-funded retirees, tighten their belts in the current economic climate which has battered superannuation funds.

Fleetwood managing director Bob McKinnon believes prospective new customers for its range of Coromal and Windsor caravans are delaying retirement or travel plans until the nation's financial situation improves.

"There is still plenty of interest, just not the sales at the moment," he said.

Fleetwood Corporation's after-tax operating profit for the 2008 financial year rose 29 percent to an all-time high of $34.2 million, but it has posted a fall in 2008-09 interim EBIT (earning before interest and taxes) of 54.5 percent, with revenue down 13.6 percent.

Fleetwood has now cut costs across its entire recreational vehicle business while concentrating on how production methods can be improved.

"It is really hard to do that when you are busy and pushing out as many 'vans as you can," Mr McKinnon said.

The fall in caravan sales is still being offset by the company's manufactured accommodation sector which continues to attract strong demand from the iron ore, oil and gas industries.

Fleetwood is one of the largest park home, transportable home and portable accommodation providers to the retirement and resource industries in Australia.