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Fleetwood Enterprises

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Submitted By Amanjitc
Words 1842
Pages 8
Fleetwood Enterprises, Inc., 1990
[Group] Case Study

Prepared By:

Aman Chahal
Vikash Chand
Eric Jou
Xiang (Sean) Li

Students of:

Corporate Finance 6215
California State University – East Bay

Prepared For:

Scott Fung

Professor of:

Corporate Finance 6215
California State University – East Bay

November 7, 2012

Table of Contents:

Business Analysis

Financial Analysis

Valuation Analysis

Policy Analysis

Conclusion

Appendix A: xx – Aman to include for her section B: 1990 Ratio Analysis C: D: XX

* Business Analysis
Fleetwood Enterprises, Inc. was the nation's largest maker of both manufactured housing and recreational vehicles (including motor homes, travel trailers, folding trailers, and truck campers) in the late 1980's and early 1990's. As a whole, Fleetwood recreational vehicles span the full range of the market, with their retail prices ranging from $3,000 to more than $200,000.

The 1970s was a period of rapid growth and expansion for Fleetwood. As the decade ended, the revolution in Iran -- sky-rocketing gasoline costs, and the buying public's fear of a recession, along with rising interest rates -- created an across-the-board slump in sales. Since most of Fleetwood's production line were vehicles, gasoline shortages, along with the spiraling costs of fuel, shook the RV market to its foundations.

Value Creation:

In 1990, Fleetwood produced about 35,000 houses in 26 plants in 13 U.S. states. Its manufactured housing revenues were about $533 million. Fleetwood was the industry’s market-share leader, having shipped 17% of all U.S. manufactured houses in 1989. In fact, it was the largest builder of any type of housing in the United States. What was the secret?

The company's line of travel trailers included sleeping, eating, and bathroom facilities. As the size and weight of

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