Fleetwood Enterprises Sees Sales Slump

Riverside-based Fleetwood Enterprises Inc. said fiscal second-quarter earnings rose 18% but that third-quarter sales are slowing. The largest maker of recreational vehicles said net income rose to $25.8 million, or 68 cents a share, compared with profit from continuing operations of $21.8 million, or 47 cents, in the year-ago quarter. A gain of $2.17 million, or 5 cents, a year ago for the sale of its finance unit resulted in net income of $24 million, or 52 cents. Wall Street was expecting the company to earn 65 cents a share. Shares fell $4.50 to $31.75 on the New York Stock Exchange. The decline came after Fleetwood President Glenn Kummer said the company is seeing slowing sales in its two core businesses, recreational vehicles and manufactured homes. Fleetwood said it is “currently experiencing softening demand for both manufactured homes and recreational vehicles.” It said fiscal third-quarter sales so far are below last year’s.