Fleetwood Enterprises, Inc. F3Q08 (Qtr End 01/31/08) Earnings Call Transcript

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2008-03-31 11:52:17.0

Tags: Fleetwood Enterprises Inc.

Question-and-Answer Session

Operator

Our first question comes from John Diffendal from BB&T Capital Markets. Please go ahead.

John Diffendal - BB&T Capital Markets

Good afternoon.

Elden Smith

Good afternoon.

John Diffendal - BB&T Capital Markets

Elden, just your last comment, I’m trying to make sure I understood what you said. Did I hear you...? Typically you relate your next quarter view toward a comparison against last year’s operating income line. Did I hear you say that the goal is to have something that basically would match that number? Did I hear that correctly?

Elden Smith

We expect to show improvement over that number.

John Diffendal - BB&T Capital Markets

Over the $18 million, almost $19 million operating income loss last year?

Boyd Plowman

John, this is Boyd. Just to clarify, that $18 million or $19 million included a substantial amount of unusual items, restructuring items, and I think a core number would have been about a $9 million loss, and our expectation and goal is to improve upon that number.

John Diffendal - BB&T Capital Markets

Upon that number, great.

Elden Smith

Correct.

John Diffendal - BB&T Capital Markets

And help me understand, Boyd, you mentioned the $4 million currency gain and that, together, it’s like $0.11. Help me understand where that is in the income statement in the segment number. Is that?I guess you reported that you had a $5.9 million gain. Is that included in that number or go on top of that number?

Boyd Plowman

It is included in that number.

John Diffendal - BB&T Capital Markets

It is included in that number but you mentioned $0.11 a share. What is the difference between the $0.8 and the $0.11?

Andrew Griffiths

John, this is Andy. The difference is the severance cost.

John Diffendal - BB&T Capital Markets

Severance, okay, got you. So that is included in that number, good. And help us a little bit with the loss in the Supply line on your segment, what is going on there and how do you see that proceeding? I know you have made some shifts in getting rid of some of those lines, but that number kind of moved up a bit.

Boyd Plowman

Yes, it largely has to do with internal volume to our internal customers, because of the weakness in both of our markets. Our external business is actually holding up fairly well.

John Diffendal - BB&T Capital Markets

 

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