Fleetwood swings to a loss in the quarter

Fleetwood Enterprises Inc., a Riverside-based maker of recreational vehicles and manufactured homes, Thursday posted a loss in its fiscal fourth quarter because of softer-than-expected trailer sales and charges related to plant closures.

The company also said demand in its businesses remained flat or weaker than last year but predicted that operating results in the current quarter should improve nonetheless.

Fleetwood posted a net loss of $39.2 million, or 61 cents a share, for its fourth quarter ended April 29, compared with a profit of $1.7 million, or 3 cents, a year earlier.

Excluding one-time severance payment and tax-related costs, the loss was 28 cents a share, compared with the 31 cent a share loss analysts polled by Reuters Estimates had expected.

Sales for the quarter fell 16% to $508.4 million, below the $552.4 million Wall Street analysts had expected.

“A successful turnaround of our travel trailer business will be key to the extent and timing of our financial improvement in fiscal 2008,” Chief Executive Elden Smith said in a statement.

“Although market conditions in all of our businesses remain flat or worse than last year at this time, we expect improved operating results for the first quarter of fiscal 2008 compared to the prior year,” he added, saying first-quarter operating results before interest and taxes should be close to the break-even level.

The RV industry faces tough headwinds -- including higher interest rates and gasoline prices and a downturn in the U.S. housing market -- which have weighed on consumer confidence and put a crimp on a broad range of discretionary purchases.

In May, the most recent month for which there’s data, motor home registrations -- the industry’s preferred measure of sales -- fell 7%, according to Statistical Surveys Inc.

Wholesale shipments, which reflect dealer sentiment about future demand, tumbled 15%.

In a note to investors, Craig Kennison, an analyst at Robert W. Baird & Co., said: “We expect soft shipments to persist as dealers lower towable inventory and face a sluggish retail environment.”

Smith said the difficult market environment was particularly evident in the company’s travel trailer division, where poor results led to the closure of five travel trailer plants.

Shares of Fleetwood closed unchanged at $9.80.