FLEETWOOD RV has rejected a suggestion that it should abandon its
caravan manufacturing business.
Analyst Simon Andrew of financial services company Hartleys believes the
Perth-based builder of Coromal and Windsor caravans, part of Fleetwood
Corporation, needs to be closed or sold to help reduce debt.
"We struggle to see how Fleetwood can turn the business around in what is
clearly becoming a more competitive market, both from local and foreign
competition," Mr Andrew said.
But Fleetwood RV chief executive Brad van Hemert told Caravanning News:
"This is the view of only one analyst out of probably 10 or 12 at a
briefing ... there is no question of us getting out of the caravan
industry.
"We are producing the Coromal and Windsor brand of caravans and will
continue to do so."
Mr van Hemert said the analyst's comments had caused "a little bit of
turmoil".
It was "quite possible" the comments had come on the back of a Fleetwood's
report which referred to its caravan market being flat.
"We are here to continue manufacturing caravans which are well known
throughout Australia. We are here to stay," he added.
In a report on its half-year results, Fleetwood Corporation admitted it
has suffered at the hands of smaller Australian caravan manufacturers.
"Increased competition from a proliferation of small Australian-based
caravan manufacturers and from overseas component parts suppliers has
impacted sales," chairman Michael Hardy admitted.
Figures showed that revenue for Fleetwood's RV division had fallen from
$69 million in the half-year ending December 2013 to $56.7 million in the
latest corresponding period.
The division comprises caravan parts and accessories company Camec;
Fleetwood RV; commercial vehicle canopies and trays supplier Flexiglass
and ute trays and accessories company Bobar.
