SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
Current Report Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: April 23, 1996
FLEETWOOD ENTERPRISES, INC.
(Exact name of Registrant as Specified in its Charter)
Delaware
(State or Other Jurisdiction of Incorporation)
1-7699 95-1948322
(Commission File Number) (I.R.S. Employer Identification No.)
3125 Myers Street, Riverside, California 92503-5527
(Address of Principal Executive Offices) (Zip Code)
909/351-3500
(Registrant's Telephone Number)
Item 5. Other Events
Attached hereto, and incorporated herein by this reference, are press
releases issued on April 18, 1996 and April 22, 1996, respectively, related to
significant events involving the Registrant.
FLEETWOOD ENTERPRISES, INC.
a Delaware corporation
__________________________
William H. Lear, Secretary
FLEETWOOD ENTERPRISES, INC. (NYSE/PSE)
Paul M. Bingham, Financial Vice President
Fleetwood To Take Earnings Charge For
German RV Operation
Paul M. Bingham (909) 351-3504
Lyle N. Larkin (909) 351-3535
Immediate
FLEETWOOD TO TAKE EARNINGS CHARGE FOR
GERMAN RV OPERATION
RIVERSIDE, Calif., April 18, 1996 -- Fleetwood Enterprises, Inc.
announced today that it intends to recognize a charge against fourth quarter
operating earnings for the revaluation of its German RV operation. As
previously disclosed, this operation continues to incur losses, and the
continuing weakness of the German economy makes it unlikely that sufficient
sales volume can soon be generated that would make the operation profitable
in the foreseeable future. According to Paul M. Bingham, Fleetwood's Chief
Financial Officer, the writedown of the German investment will result in a
charge against operating earnings in the fourth quarter and for the fiscal
year estimated to be in the range of $27 million to $35 million. On a pro-
forma basis, the after-tax effect on net earnings is expected to be between
$16 million and $21 million.
Commenting on the decision, Mr. Bingham stated that, "Fleetwood's Board
of Directors has completed a review of the German operation and has
determined that it is appropriate to revalue its investment. The German RV
market has been depressed almost since Fleetwood first made its investment
there. While our actions in introducing new products and reducing costs have
led to improvements in the operation, we have simply been unable to generate
enough volume to make the business profitable at our current level of
investment. Intensive management attention is being given to the Company's
future course of action to bring these losses to an end," Bingham concluded.
The Company also announced that it is in the final stages of
negotiation with a prospective buyer for the sale of its wholly owned RV
finance subsidiary, Fleetwood Credit Corp.
Preliminary sales for the fourth quarter and fiscal year ending April
28, 1996 will be released on May 1, 1996 with earnings scheduled to be
announced on May 29, 1996.
Fleetwood is the nation's leading producer of manufactured housing and
recreational vehicles with operations located throughout the U.S. and in
Canada and Germany.
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FLEETWOOD ENTERPRISES, INC. (NYSE/PSE)
Paul M. Bingham, Financial Vice President
Associates First Capital and Fleetwood Signed
Agreement on Sale of Fleetwood Credit Corp.
Paul M. Bingham (909) 351-3504
Lyle N. Larkin (909) 351-3535
Immediate
ASSOCIATES FIRST CAPITAL AND FLEETWOOD SIGNED
AGREEMENT ON SALE OF FLEETWOOD CREDIT CORP.
RIVERSIDE, Calif., April 22, 1996 -- Fleetwood Enterprises,
Inc., the nation's largest producer of manufactured housing and recreational
vehicles, today announced that it has reached an agreement with Associates
First Capital Corporation for the sale of Fleetwood's wholly owned RV
finance company, Fleetwood Credit Corp. The agreement is subject to
regulatory and corporate approvals.
Under the terms of the agreement, The Associates will acquire
all of the outstanding stock of Fleetwood Credit for $157 million in cash.
As part of the transaction, an operating agreement will be signed to assure
long-term cooperation between Fleetwood and The Associates and to provide
for wholesale and retail financing services to Fleetwood dealers and
customers. The companies expect to complete the transaction within 60 days.
The Associates is a diversified finance company that is part of
Ford Motor Company's Financial Services Group. It is one of the nation's
leading sources of wholesale and retail financing for manufactured housing
and currently provides financing for dealers of homes manufactured by
Fleetwood. Fleetwood Credit has total assets of approximately $400 million,
and services a total receivables portfolio of approximately $1.1 billion,
including securitized receivables. It has nine regional offices and serves
customers in 49 states.
Keith W. Hughes, chairman and chief executive officer of The
Associates, said, "The acquisition will enhance our efforts to align with
leading manufacturers in key product markets. Fleetwood is the leader in
the manufactured housing and RV industries. We believe there are growing
opportunities in these markets to enhance a manufacturer's dealer and retail
sales network."
Commenting on the sale, Fleetwood President Glenn Kummer said,
"We are pleased that an organization of Associates' stature will continue
FCC's efforts in the RV finance business. Fleetwood and Associates have had
a very successful relationship for several years involving the financing of
Fleetwood manufactured homes, and we look forward to expanding that
relationship," Kummer said.
"Through the dedicated efforts of its excellent management and
staff, Fleetwood Credit has become one of the leading companies in the RV
finance business. We believe the transfer of ownership to Associates will
facilitate the credit company's continued growth and enhance FCC's ability
to provide a broader range of services to Fleetwood RV dealers. Associates
will retain FCC staff with the objective of maintaining the high level of
quality service to which Fleetwood retailers have become accustomed," Kummer
said.
In addition to providing financing for the sale of manufactured
housing, The Associates provides consumer and commercial finance, leasing
and related services in the United States and internationally through
approximately 1,950 offices. Based in Dallas, it manages assets of more
than $41 billion.
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