Fleetwood Announces Shares to be Traded Over the Counter; Provides Update on Restructuring Moves
30 12월 2008 - 7:22AM
PR Newswire (US)
- Low Market Capitalization Led to NYSE Delisting Action -
RIVERSIDE, Calif., Dec. 29 /PRNewswire-FirstCall/ -- Fleetwood
Enterprises, Inc. has been notified by the NYSE Regulation, Inc.
that it is not in compliance with the New York Stock Exchange
(NYSE) continued listing standard that requires a listed common
stock to maintain a minimum average market capitalization of not
less than $25 million over a consecutive 30-trading-day period.
NYSE rules do not provide a cure period for non-compliance with the
minimum market capitalization continued listing standard.
Accordingly, the NYSE will suspend trading of the Company's common
stock effective with the NYSE's opening on Monday, January 5, 2009,
and the Company is making the necessary arrangements to ensure that
its common stock continues to trade through normal brokerage
channels on one of the regular over-the-counter markets. The
delisting from the NYSE does not constitute a default under the
Company's lending arrangements and will not change the Company's
filing of periodic and other reports with the Securities and
Exchange Commission under applicable federal securities laws.
Restructuring Moves Continue Separately, Fleetwood management
restated its commitment to the next phase of an aggressive
restructuring program, which is designed to return the Company to
at least breakeven cash flow early in the next fiscal year. The
Company plans to further streamline non-critical corporate
functions, centralize certain other administrative tasks to drive
efficiencies and cost savings, and strengthen operating margins
through improved labor efficiencies, materials management, and
improved utilization of capacity. Fleetwood will also continue to
closely target the most profitable products or market segments
within each of its businesses. In addition, Fleetwood intends to
join forces with its dealers in the area of their greatest need by
leveraging relationships with national and local retail and
floorplan lenders across the country and in all its business lines,
to try to assist customers through the current crisis in the credit
markets. "Fleetwood's market position, products, and organization
stand out from its competitors in both RVs and Housing," said Elden
L. Smith, president and chief executive officer, "and we intend to
leverage off our strengths. In the current environment, with tight
lending and narrow profit margins, dealers and lenders need to
partner with manufacturers who offer more than just a
cost-competitive product. Thus, we intend to build on our size and
national reputation by dedicating resources to help our dealers
access needed financing, which we are already doing in RVs through
Fleetwood Financial Services, and by continuing to provide quality
products and service that leads both of our industries. "We are
also restructuring our operating model," Smith continued. "While we
continue to push customer-facing functions, including product
development, as close to the customer as possible, we are
centralizing or outsourcing many administrative functions. This is
not only cost-effective but also strongly enhances our governance,
compliance, and risk-management responsibilities. These changes,
once implemented, will result in a leaner, more efficient
organization, and we will be well positioned to capture pockets of
growth in any of the markets in which we operate." About Fleetwood
Fleetwood Enterprises, Inc., through its subsidiaries, is a leading
producer of recreational vehicles and manufactured homes. This
Fortune 1000 company, headquartered in Riverside, Calif., is
dedicated to providing quality, innovative products that offer
exceptional value to its customers. Fleetwood operates facilities
strategically located throughout the nation, including recreational
vehicle, factory-built housing and supply subsidiary plants. For
more information, visit Fleetwood's website at
http://www.fleetwood.com/. This press release contains certain
forward-looking statements and information based on the beliefs of
Fleetwood's management as well as assumptions made by, and
information currently available to, Fleetwood's management. Such
statements reflect the current views of Fleetwood with respect to
future events and are subject to certain risks, uncertainties, and
assumptions, including risk factors identified in Fleetwood's most
recent 10-Q and other SEC filings. These risks and uncertainties
include, without limitation, the significant demands on our
liquidity while current economic and credit conditions are severely
affecting our operations; the lack of assurance that we will regain
sustainable profitability in the foreseeable future; our potential
inability to decrease our operating losses and negative cash flow;
the effect of ongoing weakness in both the manufactured housing and
recreational vehicle markets, especially the recreational vehicle
market which has deteriorated sharply in recent months; the
volatility of our stock price; the effect of a decline in home
equity values, volatile fuel prices and interest rates, global
tensions, employment trends, stock market performance, credit
crisis, availability of financing generally, and other factors that
can and have had a negative impact on consumer confidence, and
which may continue to reduce demand for our products, particularly
recreational vehicles; the availability and cost of wholesale and
retail financing for both manufactured housing and recreational
vehicles; our ability to comply with financial tests and covenants
on existing and future debt obligations; our ability to obtain, on
reasonable terms if at all, the financing we will need in the
future to execute our business strategies; potential dilution
associated with future equity or equity-linked financings we may
undertake to raise additional capital and the risk that the equity
pricing may not be favorable; the cyclical and seasonal nature of
both the manufactured housing and recreational vehicle industries;
the increasing costs of component parts and commodities that we may
be unable to recoup in our product prices; repurchase agreements
with floorplan lenders, which we currently expect could result in
increased costs due to the deteriorated market conditions; expenses
and uncertainties associated with the entry into new business
segments or the manufacturing, development, and introduction of new
products; the potential for excessive retail inventory levels and
dealers' desire to reduce inventory levels in the manufactured
housing and recreational vehicle industries; the effect on our
sales, margins and market share from aggressive discounting by
competitors; potential increases in the frequency and size of
product liability, wrongful death, class action, and other legal
actions; and the highly competitive nature of our industries and
changes in our competitive landscape. Contact: Lyle Larkin, Vice
President - Treasurer (951) 351-3535 -- Kathy A. Munson, Director -
Investor Relations (951) 351-3650 DATASOURCE: Fleetwood
Enterprises, Inc. CONTACT: Lyle Larkin, Vice President - Treasurer,
+1-951-351-3535, or Kathy A. Munson, Director - Investor Relations,
+1-951-351-3650, both of Fleetwood Enterprises, Inc. Web Site:
http://www.fleetwood.com/
Copyright