FLEETWOOD LIMITED — Interim / Quarterly Report 2008

Feb 13, 2008

Fleetwood Corporation Limited ABN 69 009 205 261

Appendix 4D Half Year Ended 31 December 2007

Results for Announcement to the Market

		Change		Amount	Amount
		%		$’000
Revenue from ordinary activities		up 1%	to	160,078
Profit from ordinary activities after tax		up 25%	to	15,962
attributable to members
Net Profit attributable to members		25% up	to	15,962
		Amount per		Franked %
Dividends		security	per security
Interim dividend		10 ¢		100%
Special dividend		20 ¢		100%
Total dividend for period		30 ¢
Previous corresponding period		¢ 29		100%
Record date for determining entitlements to the interim special dividend	and 27 F b 2008 e ruary
Date the interim and special dividend is payable		31 March 2008

For further information please contact: Brad Denison Chief Financial Officer (08) 9323 3300 BradD@Fleetwoodcorp.com.au

Fleetwood Corporation Limited ABN 69 009 205 261

Half Year Financial Report

31 December 2007

Directors’ Report

The directors present their report together with consolidated financial statements for the half-year ended 31 December 2007.

Directors

The directors of the company during or since the end of the half-year are:

Michael Hardy – Chairman, Non-executive Robert McKinnon – Managing Director Greg Tate – Executive Peter Gunzburg – Non-executive Stephen Gill – Non-executive

Review of Trading Results

Overview

view
		$ million
Revenue	up	1% to $160.1
EBITDA	up	23% to $29.0
EBIT	up	23% to $23.9
Operating profit after tax	up	25% to $16.0

The cost and availability of labour continues to be a significant challenge to the group. This is being addressed by a number of strategies including automation and recruiting from previously untapped labour pools.

As a result of the focus on higher margin business EBIT increased from 12% to 15% of revenue. Earnings per share for the period increased by 20%.

Review of Operations

Recreational Vehicles

While an increase in revenue was achieved during the period, the cost of labour eroded the EBIT margin. Caravan order books remain strong and represent approximately four months production.

A focus on throughput and labour efficiency at Flexiglass has improved its result compared to the same period last year.

Camec revenue and earnings were negatively impacted during the period by the costs and distraction associated with the roll out of a new information system. The implementation of the system which will provide enhanced levels of financial control and inventory management is now substantially complete.

	$ million	2007	2006	% Chg
	Revenue	98.8	95.0	4.0%
	EBIT	11.0	11.8	(6.8%)
	EBIT Margin	11.1%	12.4%

Manufactured Accommodation

Revenue was adversely affected during the period by resources being focused on the further expansion of the Searipple village in Karratha. The village was upgraded to accommodate approximately 1,400 people. A significant proportion of this capacity is allocated to Woodside under take or pay agreements, expiring on 30 June 2010, which underpins future profits in the division.

Other projects in the region are also impacting demand for accommodation and therefore high utilisation during the second half of the year is expected.

	$ million	2007	2006	% Chg
	Revenue	60.8	63.2	(3.8%)
	EBIT	13.1	8.6	52.3%
	EBIT Margin	21.5%	13.6%

The activity level in park homes for retirement villages slowed in the period as a result of a subdued real estate market.

Dividends

Interim Dividend

A fully franked interim dividend of 10 cents per share will be paid on 31 March 2008.

Special Dividend

In conjunction with the interim dividend a fully franked special dividend of 20 cents per share will be paid on 31 March 2008.

The special dividend of 40 cents per share for a 4 year period commencing in March 2005 will see the last special dividend of 20 cents paid with the final dividend for the 2008 financial year.

The directors have decided, subject to ongoing profitability, acquisition opportunities and market conditions, to extend the special dividend of 40 cents per share for a further 2 years which represents further special dividends of 80 cents per share over the 2 year period.

Dividend Reinvestment Plan

The Company’s dividend reinvestment plan will be available for the dividend payable in March 2008. Shares will be issued at a 2.5% discount to the weighted average market price at the record date. The last date for receipt of an election notice for participation in the plan is 27 February 2008.

Shares issued under the plan will be entitled to future special dividend payments.

Outlook

While it is expected that labour availability will remain a challenge an improved performance by the recreational vehicles division is expected in the second half.

The Manufactured Accommodation division continues to benefit from the expansion of our manufacturing facilities and the strategic investment in the Searipple accommodation village. The continuing strength of the resource sector is expected to lead to earnings growth in the second half of the financial year.

Auditor’s Independence Declaration

Section 307C of the Corporation Act 2001 requires our auditor, Deloitte Touche Tohmatsu to provide the directors of Fleetwood Corporation Limited with an Independence Declaration in relation to the review of the half-year financial report. This Independence Declaration forms part of this Directors’ Report, and is included on page 4.

Rounding

The company is of a kind referred to in ASIC Class Order 98/100, dated 10 July 1998, and in accordance with that Class Order amounts in the financial report have been rounded off to the nearest thousand dollars, unless otherwise stated.

Signed in accordance with a resolution of the directors made pursuant to s. 306(3) of the Corporation Act 2001.

On behalf of the Directors

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Robert McKinnon Director Perth, 14 February 2008

Deloitte Touche Tohmatsu ABN 74 490 121 060

Woodside Plaza Level 14 240 St Georges Terrace Perth WA 6000 GPO Box A46 Perth WA 6837 Australia

The Board of Directors Fleetwood Corporation Limited 21 Regal Place EAST PERTH WA 6004

DX 206 Tel: +61 (0) 8 9365 7000 Fax: +61 (0) 8 9365 7001 www.deloitte.com.au

14 February 2008

Dear Board Members

Fleetwood Corporation Limited

In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the directors of Fleetwood Corporation Limited.

As lead audit partner for the review of the financial statements of Fleetwood Corporation Limited for the half-year ended 31 December 2007, I declare that to the best of my knowledge and belief, there have been no contraventions of:

• (i) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• (ii) any applicable code of professional conduct in relation to the review.

Yours sincerely

DELOITTE TOUCHE TOHMATSU

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A T Richards Partner Chartered Accountants Perth, WA

Liability limited by a scheme approved under Professional Standards Legislation.

Directors’ Declaration

The directors declare that:

• (a) in the directors opinion, there are reasonable grounds to believe that the disclosing entity will be able to pay its debts as and when they become due and payable; and

• (b) in the directors opinion, the attached financial statements and notes thereto are in accordance with the Corporation Act 2001, including compliance with accounting standards and giving a true and fair view of the financial position and performance of the consolidated entity.

Signed in accordance with a resolution of the directors made pursuant to s.303(5) of the Corporation Act 2001.

On behalf of the Directors

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Robert Mckinnon Director Perth, 14 February 2008

Fleetwood Corporation Limited Consolidated Income Statement Half Year Ended 31 December 2007

Rentals Interest Sale of goods P fit l f t t ro on sa e o non-curren asse s Revenue Sub-contract costs Materials used Employee benefits expense Otherexpenses Depreciation and amortisation Profit before interest, tax, depreciation and amortisation(EBITDA) Profit before interest and tax(EBIT) Finance costs Profit before income tax expense Basic earnings per share (cents) Earnings Per Share Income tax expense Profit attributable to members of the parent entity Diluted earnings per share (cents)	18,540 311 12,897 315 144,961 138,755 2006 $ '000 $ '000 2007 369 2 472 ,
	158,542 160,078 (9,482) (11,953) (83,419) (85,797) (31,239) (26,745) (6,935) (10,443)
	(5,144) (4,189) 29,003 23,604
	23,859 19,415 (997) (1,113)
	18,302 22,862 (6,900) (5,521)
	15,962 12,781
	26.2 31.6
	26.0 31.1

Notes to the financial statements are on page 10.

Fleetwood Corporation Limited Consolidated Balance Sheet As at 31 December 2007

Current assets Cash and cash equivalents Trade and other receivables Inventories T t l t t o a curren asse s Non-current assets Trade and other receivables Property, plant and equipment Intangible assets Total non-current assets T t l t o a asse s Current liabilities Trade and other payables Tax liabilities Provisions Other T l li bili i ota current a t es Non-current liabilities Interest bearing liabilities Deferred tax liabilities Provisions Other T l li bili i ota non-current a t es Total liabilities Net assets Equity Issued capital Reserves Retained earnings Total equity	$ '000 30 June 2007 2007 31 Dec 35,004 37,248 9,486 42,951 10,288 48,485 $ '000
	93 777 89 685 , ,
	75,541 62 32,639 54 78,692 32,555
	111,385 108,158
	201 070 201 935 , ,
	3,200 - 44,040 40,062 2,802 3,972 2,789 4,983
	50 801 51 047 , ,
	17,000 28,000 4,800 - 1,948 939 1,606 2,049
	31 554 24 788 , ,
	75,835 82,355
	119,580 125,235
	(185) 22,762 102,658 95,647 23,966 (33)
	125,235 119,580

Notes to the financial statements are on page 10.

Fleetwood Corporation Limited Consolidated Statement of Recognised Income and Expense Half Year Ended 31 December 2007

Profit for the period Net income recognised directly in equity Exchange differences taken to equity on translation of foreign operations Total recognised income and expense for the period	$ '000 $ '000 (152) 237 2007 2006
	237 12,781 (152) 15,962
	15,810 13,018

Notes to the financial statements are on page 10.

Fleetwood Corporation Limited Consolidated Cash Flow Statement Half Year Ended 31 December 2007

Finance costs Interest received Payments in the course of operations Income taxes paid Cash flows from operating activities Receipts in the course of operations Net cash provided by operating activities Proceeds from sale of property, plant and equipment Cash flows from investing activities Payment for intangible assets Acquisition of property, plant and equipment Dividends paid Net cash used in financing activities Net cash used in investing activities Repayment of borrowings Cash flows from financing activities Proceeds from issue of shares Net decrease in cash held Cash and cash equivalents at the beginning of the financial period Cash and cash equivalents at the end of the period Effects of exchange rate changes on the balance of cash held in foreign currencies.	$ '000 2007 2006 316 173,158 $ '000 311 (156,453) 189,833 (150,322) (6,557) (5,067) (997) (1 113) ,
	16,972 26,137
	2,187 14,677 - (31) (19,795) (3,343)
	(5,118) (1,187)
	(10,221) (13,929) 644 (11,000) (12,000) 3,119
	(21,810) (21,577)
	10,288 64 (11) 10,490 (791) (5,792)
	4,762 9,486

Notes to the financial statements are on page 10 .

Fleetwood Corporation Limited Notes to the Financial Statements Half Year Ended 31 December 2007

1. Significant accounting policies

Statement of compliance

The half-year financial report is a general purpose financial report prepared in accordance with the Corporations Act 2001 and AASB 134 Interim Financial Reporting. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 Interim Financial Reporting. The half-year financial report does not include notes of the type normally included in an annual financial report and should be read in conjunction with the most recent annual financial report.

Basis of preparation

The condensed financial statements have been prepared on the basis of historical cost, except for the revaluation of certain non-current assets and financial instruments. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars.

2. Issued capital

Issued and paid-up capital

50,849,238 (30 June 2007: 49,950,263) ordinary shares, fully paid.

On 28 September 2007, 377,205 (31 October 2006: 824,268) shares were issued at a price of $9.01 per share pursuant to the Company's Dividend Reinvestment Plan.

During the period 521,770 (2006: 160,535) shares were issued as a result of the exercise of options pursuant to the Employee Share Option Plan and Executive Share Option Plan.

3. Dividends

During the period a final dividend of 14 cents and a special dividend of 20 cents per share was paid relating to the year ended 30 June 2007.

During the year 377,205 shares were issued pursuant to the Dividend Reinvestment Plan.

Recognised amounts Final dividend Special dividend	20.0 9,692 20.0 10,097 14.0 $ '000 6,058 2007 Cents per share $ '000 Cents per share 12.5 7,069 2006
	32.5 15,750 34.0 17,166

The last date for receipt for an election notice for participation in the Dividend Reinvestment Plan is 27 February 2007.

4. Other liabilities

Other liabilities represent deferred income which will be brought to account over the contract period to which it relates.

5. Segment information

5. Segment information
Recreational Vehicles Manufactured Accommodation Unallocated Finance costs Profit before income tax expense Income tax expense Profit from continuing operations Net tangible assets per security 6. Net tangible assets per security	Depreciation and Amortisation Segment Revenue $ '000 $ '000 2007 2006 2,417 98,810 95,029 1,671 1,634 2007 2006 $ '000 $ '000 60,796 63,181 472 332 114 138 3,359	Segment Results (EBIT) 13,122 11,781 8,595 $ '000 $ '000 2007 2006 (961) (227) 10,964
	160,078 158,542 5,144 4,189	23,859 19,415 (1,113) (997)
		22,862 18,302 (6,900) (5,521)
		12,781 15,962
		$1.66 $1.82

Net tangible assets per security

Deloitte Touche Tohmatsu ABN 74 490 121 060

Woodside Plaza Level 14 240 St Georges Terrace Perth WA 6000 GPO Box A46 Perth WA 6837 Australia

Independent review report to the members of Fleetwood Corporation Limited

DX 206 Tel: +61 (0) 8 9365 7000 Fax: +61 (0) 8 9365 7001 www.deloitte.com.au

We have reviewed the accompanying half-year financial report of Fleetwood Corporation Limited, which comprises the balance sheet as at 31 December 2007, and the income statement, cash flow statement, statement of recognised income and expense for the half-year ended on that date, selected explanatory notes and the directors’ declaration of the consolidated entity comprising the Company and the entities it controlled at the end of the half-year or from time to time during the half-year.

Directors’ Responsibility for the Half-Year Financial Report

The directors of the Company are responsible for the preparation and fair presentation of the half-year financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the half-year financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of an Interim Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the Consolidated Entity’s financial position as at 31 December 2007 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor Fleetwood Corporation Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Liability limited by a scheme approved under Professional Standards Legislation.

Auditor’s Independence Declaration

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 .

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Fleetwood Corporation Limited is not in accordance with the Corporations Act 2001, including:

• (a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2007 and of its performance for the half-year ended on that date; and

• (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

DELOITTE TOUCHE TOHMATSU

A T Richards Partner Chartered Accountants Perth, 14 February 2008