Fleetwood studies moving corporate staff out of state
Fleetwood Enterprises Inc., the recreational vehicle maker, may shift more than half of its 500-member staff at its Riverside corporate offices to other parts of the country.
The company has been struggling with soft sales in its trailer division and is looking for ways to trim costs. One option could be to shift corporate personnel from Riverside to other areas where Fleetwood has factories and costs are lower.
The divisions studying possible moves are manufactured housing and recreational vehicles. Those two divisions account for about 310 of the 500 workers at Fleetwood’s corporate offices.
“The plan would be that the corporate headquarters would stay here or in this area,” Kathy Munson, Fleetwood’s director of investor relations, said Monday. “The divisions are just checking to see what might make sense for them financially and for potential recruiting in the future.
“It’s just a feasibility study. We will not make any moves if they’re not cost effective.”
Analysts said it made sense for Fleetwood to weigh its options.
“I think it’s a good move on their part,” said Jay McCanless, senior analyst with FTN Midwest Securities Corp. in Nashville. “It would be cheaper than having them in Southern California and it puts them very close to the action.
“It’s never bad for management to be close to what’s going on,” added McCanless, who doesn’t own Fleetwood stock and whose firm doesn’t have an investment banking relationship with the company.
Fleetwood has several plants in the eastern half of the country; its biggest plant, which produces recreational vehicles, is located in Decatur, Ind.
This year, the company closed a trailer plant in Riverside that employed more than 400 people. The company still has three factories in the area. About 1,500 of its approximately 9,000 workers are in Riverside County.
This month, Fleetwood posted a $39.2-million net loss for its fiscal fourth quarter. Demand for its travel trailers swelled in 2005 after hurricanes Katrina and Rita, but last year’s mild hurricane season caused a drop in demand and swelling inventories.
