Winnebago Posts Improved 1Q Earnings, Sales
Winnebago Industries Inc. reported improved earnings and revenue for its fiscal 2008 first quarter, ended Dec. 1, while cautioning that the motorhome market would remain challenging going forward.
Chairman and CEO Bruce Hertzke cited several factors that boosted performance, including an additional week in the quarter.
“We were pleased with our performance during the quarter, despite difficult market conditions,” he said. “In addition to the extra week in the first quarter, our results include a positive shift in the mix to a higher percentage of Class A products delivered and fewer dollars spent on retail promotional programs, which resulted in both higher revenues and higher margins for the company.”
Sales for the 14-week quarter were $215.1 million, an increase of 6.6% compared to $201.8 million for the 13-week period the previous year. Net income rose 25.5% to $10 million from $7.9 million a year ago.
During the quarter, Winnebago shipped 1,199 Class A units versus 1,113 the year prior and Class C shipments fell 2.4% to 2,155 units.
President Bob Olson said that Winnebago’s new product introductions during November’s National RV Trade Show were “extremely well received” while noting that market conditions in the “seasonably slow” second quarter would be soft.
“Consumer confidence remains weak and we believe it will take some time for the recent interest rate cuts to have a positive impact on our market,” he said.
Hertzke also reported that Winnebago had completed the $60 million repurchase authorization during the quarter that was approved in June with the repurchase of approximately 676,000 shares of common stock for an aggregate cost of approximately $17.5 million. A total of approximately 2.2 million shares were repurchased under the $60 million repurchase program.