RIVERSIDE, Calif., Jan 30 (Reuters) - Fleetwood Enterprises Inc. on Thursday said its loss in the quarter just ended would be larger than expected as sales of manufactured homes fell sharply. It also said it may not return to profitability in the current quarter as previously expected.
Fleetwood, the largest U.S. maker of recreational vehicles and the No. 2 manufactured housing producer, said sales fell 6 percent in its fiscal third quarter ended Jan. 26, to $493 million. RV sales rose 11 percent, but its housing segment sales plummeted 27 percent.
"The manufactured housing industry is facing the most difficult financing environment in its history," Fleetwood President and Chief Executive Edward Caudill said in a statement.
As a result, the Riverside, California, company expects its loss in the third quarter to be greater than anticipated, Caudill said. "Our previous expectation that we would return to profitability in the fourth quarter is now in doubt," he added.
Fleetwood also said it would pay the cash distributions due next month on its 9.5 percent preferred securities but would continue to defer payments on its 6 percent securities.