Fleetwood Posts Lower Than Expected Profits Due To Rising Gas Prices And Supplier Issues

Fleetwood Enterprises posted a lower-than-expected quarterly profit and said rising gas prices and supply issues were cutting into demand. The RV and manufactured home maker also expects to post an operating loss in the current quarter, citing parts shortages and shipment delays.

The company reported net income, including results from discontinued operations, of $1.7 million, or 3 cents per share, for the fourth quarter ended on April 30, helped by restructuring efforts. That compared with a year-earlier net loss of $120.5 million, or $2.16 per share.

"During the first quarter, the operating environments for most of our businesses have been challenging," Fleetwood Chief Executive Elden Smith said in a statement.

"In addition, with some of our new travel trailer models, we have experienced temporary parts shortages that impacted efficiencies and will delay some shipments until the second quarter," Smith said.

 Additionally, sales of manufacturing housing are slower than expected in almost every region. Smith said the company expects demand to improve, however, due to the high level of repossessed homes, relatively low apartment rental rates and the expected reconstruction of the hurricane-affected Gulf Coast.