Business Description:
Fleetwood Corporation Ltd (FWD) operates in the mobile accommodation market, focussing on three sectors: retirement, recreation and resource development. The company has two key divisions: recreational vehicles and manufactured accommodation.

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 up 33% to $51.25m for the year ended 30 June 2011. Revenues from ordinary activities were $466.62m, up 60% from last year. Revenue included a part year contribution from BRB Modular, as well as increased sales of accommodation units and caravans. Diluted EPS was 88.6 cents compared to 71.5 cents last year. Net operating cash flow was $51.84m compared to $54.82m last year. The final dividend declared was 41 cents, taking the full year dividend to 73 cents compared with 68 cents last year. The Company reported it is well positioned in sectors that are expected to exhibit strong growth. The results for Searipple Village are affected by resource project activity around Karratha. High levels of occupancy are expected for the first half of 2012.