Fleetwood post profit slump

Caravan maker Fleetwood posted an 81 per cent drop in its first-half profit to $5.1 million.

Revenue was also down 24 per cent on the same period last year to $148.6 million.

Fleetwood said weak conditions in its key markets affected the company’s results, the West Australian reported.

"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."

However the company said it expected improved results 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.

Image: fleetwood.com.au

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