Fleetwood struck by $5m impairment

Vehicle part and caravan manufacturer Fleetwood Corporation has announced a $5 million earnings drop as a result of challenging demand circumstances for recreational vehicles.

The impairment won’t affect its EBIT disclosed in its most recent market update, the company said.

Full-year results are expected to be released on Tuesday, the first release for Bradley Denison in the role of managing director.

Earlier this month, Fleetwood announced it would acquire Bocar, a New South Wales aluminium tray and accessory manufacturer, expected to increase scale for Fleetwood subsidiary Flexiglass.

The acquisition was funded through $4.75 million of borrowings from Westpac.

Business News reported earlier this month that vehicle sales had dropped off in Western Australia.

Fleetwood shares were up 5.1 per cent to $2.46 at the time of writing, continuing a strong positive trend through most of August.