THE West Australian-based Fleetwood Corporation, manufacturers of the Coromal and Windsor range of caravans, is smarting from a 34 percent slump in revenue.

But despite a nine percent tumble in profit during the December 2009 half-year, the company is confident things will improve.

Fleetwood, which also supplies manufactured homes and the Camec range of RV accessories, blamed the disappointing slump on client delays in awarding contracts and unsustainable price competition.

But investors in the Perth company welcomed news that shares were higher, despite the first half profit falling to $16.8 million.

Profit for the corresponding period ending December 2008 had defied the general global downturn and came in at an impressive $18.4 million after Fleetwood managed to steer clear of trouble mainly due to its manufactured accommodation business.

Its recreational vehicle division actually reported lower revenue as people, particularly retirees, put off buying caravans in the then uncertain economic climate.

RV sales nosedived by 13.6 percent to $85.4 million while manufactured accommodation revenue soared by a massive 82.1 percent to $110.7 million.

Commenting on the latest results, the company said in a statement: "Despite the decline in revenue we remained focused on maintaining margins which has resulted in a reasonable level of profitability in a difficult economic environment."

Demand for caravans had increased and further improvement appeared likely, Fleetwood said.

BACK TO CARAVANNING NEWS MAIN PAGE