Benefiting from heightened motorhome demand driven by an improving economic environment, Winnebago Industries Inc. swung to a profit in its fiscal second quarter on a 34.6% gain in revenue.
Sales for the second quarter, ended March 2, totaled $177.2 million versus $131.6 million for the second quarter of fiscal 2012. The Forest City, Iowa-based builder reported net income of $6.3 million, or 22 cents per diluted share, versus a loss of $912,000, or 3 cents per diluted share, the previous year. Second-quarter operating income was $8.9 million compared to an operating loss of $1.2 million a year ago.
The company said earnings in the second quarter were positively impacted by increased motorized demand driving higher sales volume. The added sales volume, combined with firmer net pricing, increased manufacturing productivity and fixed cost leverage, resulted in higher operating margins, net income and earnings per share.
Revenue for the first 27 weeks of fiscal 2013 were $370.7 million, an increase of 40.7%, versus revenues of $263.4 million for the first 26 weeks of fiscal 2012. Net income for the first half of fiscal 2013 was $13.7 million, or 48 cents per diluted share, versus $123,000, or 0 cents per diluted, share for the first half of fiscal 2012. Operating income during the period was $18.8 million versus operating loss of $537,000 the previous year.
“We had very positive comparisons this year versus the first half of fiscal 2012,” said Winnebago Industries Chairman, CEO and President Randy Potts. “Our motorhome sales growth continues to out-pace the industry. As evidenced by the heightened level of our sales order backlog, we continue to see great response to our products from our dealer partners as well as from retail consumers.”
Potts continued, “We believe the motorized RV market will continue to grow toward pre-recession levels. Improved economic indicators such as rising housing starts, lower unemployment and attractive interest rates should create a positive environment going forward.”