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Business Description: Fleetwood Corporation Ltd (FWD) operates in the mobile accommodation market, focusing on three sectors namely retirement, recreation and resource development. The company has two key divisions: recreational vehicles and manufactured accommodation operated in Australia and New Zealand.
Strategy Analysis: FWD's corporate strategy has been to position itself so that it can take advantage of expected growth in each of its markets. Competition in the RV market centres on price, features and quality. A segmentation strategy is appropriate to target customers who place emphasis on different features. FWD's segmentation strategy has allowed it to pass on most cost increases especially at the higher end of the market. Dealers further segment the market by exhibiting at trade shows and advertising in magazines, targeting readers with models appropriate to their socio-economic status. Segmenting the market is made possible through FWD's flexible manufacturing operations and process and product innovation. FWD is now in a position to gain market share from those customers who have specific and changing needs and requirements. Competitors within the MA compete on price. The market is characterised by a tendering process for long term contracts. FWD has been locking in long term 'take or pay´ contracts with established resource companies such as Woodside to build or extend existing accommodation villages. Deteriorating commodity markets negatively impact FWD's ability to secure further long term contracts, but the take or pay nature of their contracts sees revenue largely locked in.
Fleetwood Corporation reported NPAT down 81% to $5.12m for the half-year ended 31 December 2012. Revenues from ordinary activities were $148.6m, down 24% from the same period last year. Diluted EPS was 8.5 cents compared to 45.3 cents last year. Net operating cash flow was $6.23m compared to $47.59m last year. The interim dividend declared was 30.0 cents compared with 33.0 cents last year. The company reported that it expects an improved result in the second half of the financial year. Manufacturing activity is expected to be strong, underpinned by the Osprey and Searipple upgrade projects in WA and the Gladstone project in Qld. The Gladstone and Searipple upgrade projects will be capitalised and therefore will not be recognised as revenue.
The Age 21/05/2013 |
Optus says its 4G mobile network will reach 70 per cent of the Australian population by mid-2014. The carrier revealed it has upgraded 4000 3G sites to 4G in five capital cities and in Coffs Harbour, the Gold Coast and Byron Bay. It also plans to make its 4G network suitable for customers with dual-band 4G mobile devices.
The Age 21/05/2013 |
Hong Kong private equity firm Quantum Pacific Capital says it is best placed to resolve a dispute over the ownership of a troubled $5 billion copper and gold project in Java and is negotiating to grab back as much as 80 per cent of the project on behalf of former owner Intrepid Mines.
The Age 21/05/2013 |
Shareholders in Transfield Services were bracing themselves on Monday for an earnings downgrade following downgrades by other mine services operators such as UGL, WorleyParsons and the smaller Coffey International last week.
The Age 21/05/2013 |
The whole retail recovery story has wandered perilously off script over the past quarter. The start of the year held the promise of green shoots at the discretionary spending end. But as we near the close of the financial year, the fragile recovery appears to have been nipped in the bud.
The Age 21/05/2013 |
New Leighton Holdings chairman Bob Humphris has moved to dispel fears that its directors remain at war with its German parent Hochtief, insisting the relationship was "collegiate" despite the abrupt resignation of three fellow directors two months ago.
The Age 21/05/2013 |
Australian shares flirted with five-year highs on Monday, returning to levels not seen since the onset of the global financial crisis, as investors were spurred on by signs of strength in the US economy.
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