Fleetwood warns on profits
UPDATE 2.20pm: Fleetwood Corporation has warned its second-half operating EBIT will slump to just $3 million because of the continued slowdown in the resources sector.
The company cited weak consumer confidence across its markets and lower than expected occupancy rates at its Searipple Village in Karratha.
However Fleetwood offered a more positive outlook for the year ahead, reporting strong demand for its portable accommodation products in the education sector in WA, Victoria and Queensland.
The company also noted the operational phase of its Osprey Village project in South Hedland had begun, which it expected to operate for the WA Department of Housing for 15 years.
"The village generates a Government underwritten earnings stream for Fleetwood which is not dependent on occupancy," the company noted.
It also reported Rio Tinto had extended its agreement for accommodation services at the Searipple Village for a further six months until December. The company has options to extend the agreement for another two six-month intervals.
Fleetwood also said it had won a contract to build and rent to Laing O'Rourke a 200-person fly camp and a 350 person construction camp at Combabula in Queensland with a minimum 20-month rental term.
The company said it expected to announce a replacement for former chief executive officer Steve Price next month. Mr Price announced his resignation in March after four years at the helm of the donga and caravan maker.
Fleetwood shares were up seven cents, or 3.1 per cent, to $2.33 at the close.
