Fleetwood FY profit slumps

The mobile accommodation manufacturer posted a sharp fall in full-year profit as the softening resources sector continues to impact operations.

Fleetwood Corporation (FWD) expects weak demand from the resources sector to further drag on its operations into 2013-14 after posting a fall in net profit that missed analyst estimates.

The mobile accommodation manufacturer's share price dived by 14.8% to $3.52 at 1043 AEST, the worst fall since its trading update in May flagged a poor result.

Net profit for the full year plummetted 77% to $12.5 million, below revised consensus forecasts for $15.5 million.

While demand from the resources sector is expected to remain subdued into the current financial year, the company says it is pursuing opportunities through affordable housing, the oil and gas sectors, and education. The recreational and commercial vehicle markets are expected to be weak.

Revenue from continuing operations fell 13% to $333.9 million.

Fleetwood declined to pay a dividend for the period, against analyst expectations for 43 cents a share – the same as the previous corresponding period.

"In view of the earnings performance in the second half and the capital expenditure requirements of the Osprey project, the directors believe it prudent not to pay a final dividend," Fleetwood said.

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