Caravan and donga maker Fleetwood saw an 18 per cent decrease in its first-half profit, despite a strong jump in revenue.
Revenue was up 28 per cent, according to Fleetwood’s interim financial report. The West Australian reports that first-half profits fell to $4.2 million, nothing that the erosion in profit highlights the pressure that margins for Fleetwood were coming under.
“[R]evenue for the group was significantly higher than the previous corresponding period driven in part by the introduction of new products and new services for the recreational vehicles and education sectors, but overall margins for the group were lower reflecting the tough trading conditions,” said Fleetwood.
This result follows a difficult first-half result for Fleetwood the year earlier, in which its profit dropped 81 per cent that year to $5.1 million.