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Fleetwood lower on profit slump
The West Australian

Fleetwood shares were lower after the donga and caravan maker posted an 81 per cent drop in first-half profit to $5.1 million and lowered its interim dividend by three cents to 30 cents a share fully franked.

The result came on the back of revenue of $148.6 million, down 24 per cent on the previous corresponding period.

The bottom line profit included a $3.8 million after-tax loss from the company's discontinued Victorian caravan manufacturing operation.

Fleetwood said conditions in its key markets were weaker during the first half, which affected the company's results.

"Low levels of manufacturing activity in WA were experienced during the period following the fall in commodity prices," the company said in a statement.

"During the period a number of actions were taken to increase revenue and reduce costs including entering into a new accommodation agreement for Searipple village (in Karratha), an early start on the Osprey project, and consolidating the group's caravan manufacturing businesses."

Fleetwood said it expected an improved result in the second half of the financial year.

"The 2014 financial year will benefit from the operational phases of the Gladstone and Osprey villages, improved occupancy at Searipple village and the consolidation of operations in the recreational vehicles division," the company said.

Fleetwood shares were off 14 cents, or 1.4 per cent, to $9.83 at 8.45am.