Fleetwood slumps on sagging profit
UPDATE 1.55pm: Fleetwood shares were down sharply after the company posted an 18 per cent fall in first-half profit to $4.2 million and slashed its interim dividend.
The slump in profit came despite a 28 per cent jump in revenue, highlighting the increasing pressure on margins at the donga and caravan business.
The company slashed its interim dividend from 30 cents a share fully franked to two cents a share.
"Overall conditions in the group's key markets continued to be weak for most of the first half," Fleetwood said in a statement.
"However, revenue for the group was significantly higher than the previous corresponding period driven in part by the introduction of new products and new services for the recreational vehicles and education sectors, but overall margins for the group were lower reflecting the tough trading conditions."
Fleetwood said overall market conditions continued to be weak however the recreational vehicles and education sectors were showing signs of improvement.
Shares in the company closed off 21 cents, or 7.37 per cent, at $2.64.
