Fleetwood's profit slides 7pc

Shares in Fleetwood Corporation were lower after it posted a 7 per cent fall in first-half profit to $3.9 million.

The result was achieved on revenue of $157 million, which was down 18 per cent on the previous corresponding period.

However Fleetwood noted its EBIT for the period was up 8 per cent to $7.5 million.

The company has decided not to declare an interim dividend despite paying a two cent dividend in the previous corresponding period.

Fleetwood said strong earnings from education and affordable housing offset subdued market conditions in resources and recreational vehicles during the period.

The company said it expected continued strong earnings from education and affordable housing in the second half and its preferred supplier agreement announced with Rio Tinto yesterday would support occupancy rates at its Searipple Village in Karratha.

Fleetwood said it might be in line for a capital payout from the State Government if it cannot agree on terms for a 15-year operating lease for its Osprey Village in South Hedland. Such a payout would significantly reduce net debt, which stood at $63.3 million at the end of December, the company said.

Fleetwood said it was in the process of restructuring its recreational vehicles division to improve cost, efficiencies and channels to market.

Shares in the company were off three cents, or 2.17 per cent, to $1.35 at 10.35am.