Fleetwood posts record first-half profit

Stuart McKinnon, The West Australian February 21, 2012, 8:02 am
Fleetwood posts record first-half profit

Fleetwood posts record first-half profit

UPDATE 11.10am: Donga and caravan maker Fleetwood Corporation has lifted its first-half profit by 10 per cent to a record $26.9 million and boosted its interim dividend by one cent to 33-cents-a-share fully franked.

The result was achieved on revenue of $206.1 million, off 9 per cent on the previous corresponding period.

Fleetwood said strong demand from the WA resources sector had more than offset soft trading conditions in its recreational vehicles sector.

"Strong operating cash flows of $47.6m allowed all debt to be repaid during the period," the company said.

"A decline in consumer sentiment for discretionary spend items caused production of recreational vehicles in Australia to be lower than in the previous six month period, which adversely impacted revenue from the sale of parts and accessories to the industry."

However the company said it expected continued strong growth in demand for manufactured accommodation from the WA resources sector as more projects were approved and moved into construction.

Fleetwood said it continued to look for growth opportunities, including acquisitions and the development and ownership of accommodation assets.

Fleetwood shares were up 16 cents, or 1.23 per cent, to $13.18 at 11.10am.


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