Fleetwood will close 8 factories

Fleetwood Enterprises Inc., the third-largest maker of recreational vehicles, said it was closing eight of its 24 plants because of reduced demand for travel trailers and factory-built housing.

The company expects to cut about 760 jobs, or 13% of the 5,700 positions it had at the end of August, as production is consolidated at other facilities, said Kathy Munson, a Fleetwood spokeswoman. The Riverside company said Monday that seven of the factories were in the United States and one was in Mexico.

These plant closures are a good indication of how challenging Fleetwood’s operating position has become, said Kathryn Thompson, an analyst at Avondale Partners in Nashville, Tenn.

Fleetwood in its last nine quarters has reported no year-over-year revenue increases and just one quarter of profit, as housing demand slumped and high fuel prices and sagging consumer confidence trimmed RV sales.

The company today will release results for its second quarter that ended Oct. 26. Analysts surveyed by Bloomberg expect a loss of 43 cents a share.

“In the current economic climate, it is essential that we match our production to demand,” Chief Executive Elden Smith said in a statement. “We must position Fleetwood to operate profitably under the present and foreseeable business circumstances.”

Fleetwood’s stock price fell 1 cent to 16 cents. The shares have lost 97% of their value this year.

Six of the plants being shut down produce housing. They are in Woodland, Calif.; Auburndale, Fla.; Willacoochee, Ga.; Benton, Ky.; Pembroke, N.C.; and Douglas, Ga.

The two travel-trailer plants being closed are in Crawfordsville, Ind., and Mexicali, Mexico.