Fleetwood to Discontinue Common Stock Dividend

Mobile-home and recreational-vehicle maker Fleetwood Enterprises Inc. will discontinue its common stock dividend and defer the next quarterly payment on a series of convertible securities.

The Riverside-based company said the move will help it conserve cash in the face of a long-term decline in the sales of manufactured housing or mobile homes as well as recreation vehicles. Fleetwood said that halting the dividend and distribution payments will save the company $5.6 million per quarter.

The company said its wholly owned Fleetwood Capital Trust 1 will defer the quarterly distribution scheduled for Nov. 15 and for at least the two following quarters. Fleetwood created the trust in 1998 as part of issuing $287.5million in convertible preferred securities.

Under the terms of the trust, Fleetwood is prohibited from paying common stock dividends when trust distributions are deferred.

Fleetwood said it will discontinue the common stock dividend following payment on Nov. 14 of the previously declared dividend of 4 cents per share.

On the New York Stock Exchange, Fleetwood shares rose 9 cents to close at $9.92. The announcement was made after the market’s close.