Major RV Stocks See Surge Despite Soft Market

A weak job market and rebounding gasoline prices make it an unlikely time for a renaissance in the recreational vehicle trade.

But, according to a report by Investors Business Daily, the industry’s top players are on a tear.

Thor Industries Inc. shares climbed in eight of the past nine weeks, posting a gain of about 50% since a Nov. 29 low. Winnebago Industries Inc. gained in nine of the past 11 weeks, and is up more than 65% from a Nov. 25 low.

Manufactured housing and park model builder Cavco Industries Inc.’s stock rose five of the past eight weeks, and has added more than 45% since Dec. 19 and more than 80% since Aug. 10. Drew Industries, an RV amd MH components supplier, spiked 8% Monday after a fat fourth-quarter earnings win.

On Feb. 2, Thor released preliminary results for its fiscal second quarter, pointing to 12% overall sales growth. The company gave no sales forecast, but analysts’ consensus estimate calls for a 140% EPS gain when the company reports March 5.

A statement from Chairman, CEO and President Peter Orthwein cited some positive trends.

“Sales momentum remains strong,” he said, adding that results from January trade shows indicated “rebounding consumer confidence, access to credit and low interest rates.”

Brett Jordan, an analyst with Avon Partners, said a large piece of Thor’s momentum owed to a promotion with GE Capital. Starting in mid-September, around Open House in Elkhart, Ind., GE and Thor combined to cover the interest on loans to dealers restocking their floor inventories.

“You could argue that there was a fair amount of unseasonable demand for their product since the dealers were being subsidized to take it,” Jordan said.

Jordan also sees a cyclical component to the stock’s gains. That would help explain why shares of Winnebago, which did not participate in the promotion, are also going great guns.

Craig Kennison, analyst with R.W. Baird & Co., says recreational vehicle stocks often act as an early economic indicator, and the gains could be tied to a changing stance among larger investors. Kennison said he’d been fielding calls from active investors “doing fresh work on the sector,” possibly linked to rising consumer-confidence data.

“More broadly, we’ve seen investors shift from a defensive profile to a more aggressive stance, which has helped the riskier side of the consumer space,” he wrote in a report.

 

Winnebago Winner Enjoys Super Bowl Weekend

Winnebago Industries Inc. announced that Joe Hale, sales associate for McClain’s RV in Ft. Worth, Texas, was the winner of the company’s “Touchdown Diesel Sales Promotion.” Hale’s name was drawn from all of the dealer sales personnel who sold qualifying Winnebago and Itasca Class A diesel-powered motorhomes during the program period of Sept. 1 to Dec. 31. Hale and his wife, Judith, enjoyed a Super Bowl weekend in Indianapolis, attending pre-game festivities and the big game on Sunday courtesy of Winnebago Industries. “Thanks to Winnebago Industries, Judy and I experienced the trip of a lifetime,” said Hale. “We had an absolutely great time from the moment we arrived on Friday, with Saturday’s NFL Experience where we had the opportunity to interact with NFL personnel and throw passes, to the game itself on Sunday. Our Super Bowl tickets were unbelievable – 17 rows off the ground floor of the stadium – and the people were fabulous. With seven innovative floorplans, including the new 36M and 42QD, Winnebago said it has become the second largest Class A diesel manufacturer in the U.S., with market share more than doubling over the last four years. According to Statistical Surveys Inc., Winnebago’s Class A diesel market share grew from 8.1% in calendar year 2008 to 17.4% calendar year to date through November 2011.

Winnebago Names Jass as Distribution Manager

Forest City, Iowa-based Winnebago Industries Inc. announced the appointment of Todd Jass to the position of warehouse, distribution and production control manager.

According to a news release, Jass replaces Ron Berry as warehouse and distribution manager, who retired from the company after 39 years of service, in addition to retaining management of production and inventory control functions.

In his new position, Jass is responsible for Winnebago’s warehouse operations, interplant material handling, over-the-road truck fleet operations, as well as the salvage department. In addition, Jass will continue to manage production and inventory control functions within the company.

A 28-year veteran of Winnebago Industries, Jass most recently served as a production manager in the motorhome assembly plant. Other prior positions include senior buyer, material analyst, production control coordinator and parts distribution supervisor.

Jass earned an associate of arts degree from North Iowa Area Community College, Mason City, Iowa.

 

 

Guaranty RV Tops Western Region Itasca Dealers

Guaranty RV Super Centers has been recognized as the No. 1 Itasca retail dealer in the western area by Winnebago Industries, Inc.

“We’re proud of our team here at Guaranty RV. We always strive for complete customer satisfaction,” said Shannon Nill, owner of Guaranty RV, in a press release. “As long as our customers are happy, we know we’re doing our job right. We’re extremely pleased to be rewarded with such a prestigious honor.”

This year, Guaranty RV was one of 20 dealers honored with the Top 10 Itasca motorhome retail dealers in recognition of  “excellence in customer satisfaction as it relates to the customers sales and service experience with the dealer.”

“Winnebago Industries values Guaranty RV and holds them in the highest regards. We are extremely proud to have Guaranty RV represent the Itasca line,” said Brion Brady, Winnebago district sales manager.” That commitment to providing excellent customer service is what separates Guaranty from the rest.”

 

 

Winnebago Announces Retirement of Bob Olson

Winnebago Indusries Inc. today (Jan. 12) announced the retirement of Bob Olson from the position of chairman, effective Feb 24.

Randy Potts, 53, will assume the role of chairman in addition to his current positions of CEO and president, in accordance with the Forest City, Iowa-based company’s succession plans. A 28-year veteran of Winnebago Industries, Potts joined the company in 1983 as a senior tool designer and has served in various engineering and management positions since that time.

In January 2011, he was elected to the position of president and was elected to the additional role of CEO in June 2011. Potts has also served as vice president, manufacturing and senior vice president, strategic planning in which he was responsible for new business development for the company. Potts is a graduate of Hawkeye Institute of Technology in Waterloo, Iowa.

Olson, 60, is a 43-year veteran of Winnebago Industries. While relinquishing his role as chairman, he will remain a member of the board and will also continue to serve in his role on the Executive Committee of the Recreation Vehicle Industry Association (RVIA) and as co-chair of the Go-RVing Coalition.

“I look forward to traveling more with my wife, Kathy, in our Winnebago Journey motorhome as we experience the RV lifestyle we have promoted the last 43 years,” said Olson. “I am also excited to continue to serve the company as a member of the board. Randy has done an outstanding job in leading Winnebago Industries since his promotions last year and I have every confidence in his ability to lead as we continue to move forward and grow in the future.”

“Bob has successfully led Winnebago Industries through some of the most challenging times in our company’s history,” said Potts. “We are greatly indebted to Bob for his exemplary service, his unwavering dedication and his passion for improving quality and performance in every area of our organization. I feel fortunate to have ready access to his expertise in his continued role as a member of our board and look forward to moving forward with the vision he has helped to chart for the company’s future.”

Winnebago Rolls Out Tag-Axle Journey, Meridian

Winnebago Industries Inc. has introduced the new tag-axle 42E to its 2012 Winnebago Journey and Itasca Meridian Class A diesel lineup.

“Our diesel products have never been better than in 2012,” said Winnebago Industries Vice President of Sales and Marketing Roger Martin. “In fact, over the last three years, we have more than doubled our diesel market share to become the second largest manufacturer of Class A diesels. Much of that is thanks to innovative, new floorplans like the 42E that offers amenities and spacious living that make them a cut above the competition.”

As the first tag-axle floorplan in the popular Journey and Meridian lineups, the new triple-slide 42E offers a bath-and-a-half layout with a full-wall slide on the passenger side of the coach that includes a 40-inch LCD HDTV, Euro Recliner with pull-out table, buffet with extendable dining table and chairs, four-door refrigerator, pantry and residential-style bedroom wardrobe. The living area also offers a Rest Easy extendable sectional sofa, tray ceiling design and polished ceramic tile for an inviting, upscale look.

The fully-equipped mid-coach galley features an innovative pull-out island for more prep space that also increases storage space with three drawers on full-extension slides. The spacious bedroom is set off by a “one-of-a-kind” wardrobe that features a full-length clothes rod, his-and-hers three-drawer units and an adjustable shoe shelf. A queen bed is nestled in

the slideout with dual nightstands and a new, power-adjustable king bed is optional. The private master bath in the rear of the coach features a spacious “BIG Shower” as well as plenty of storage, with a washer/dryer optional. A half bath sits mid-coach that is perfect for guests.

The 42E is built on Winnebago’s 44,320-pound GVWR Maxum lowered rail tag-axle chassis that features 220 cubic feet of easy-to-access exterior storage and superior ride and handling, and is powered by a 400-hp Cummins ISL 8.9L turbo-charged diesel engine.

“The new 42E is a great floorplan at a great price point,” said Mike Regan, president and general manager of Crestview RV Center in Buda, Texas. “I love the bath-and-a-half floorplan, and I think customers are really going to like the usability and layout of this coach.”

The 2012 Winnebago Journey and Itasca Meridian 42E make their retail market debut at this week’s Florida RV SuperShow in Tampa, Fla. For more information on the 2012 Winnebago Journey and Itasca Meridian, or to find a dealer, visit www.GoWinnebago.com or www.GoItasca.com.

 

Winnebago Receives Ford’s ‘Fully Meets’ Status

Forest City, Iowa-based Winnebago Industries, Inc. was recognized by Ford Motor Co. for receiving the “fully meets” classification as part of their Truck Quality Program. According to a press release, Winnebago Industries has received this award from Ford since the program’s inception in 1997.

The Truck Quality Program is the highest honor awarded to vehicle modifiers. It is based on an assessment of a modifier’s engineering capability, design and build process controls, management commitment and quality control procedures. According to Ford, the purpose of this program is to “assure vehicle modifiers have the capability and processes in place to complete the vehicle in a repeatable manner that maintains the integrity of the Ford chassis system, meets Federal and other standards in place at the time of the build and provides end users with a quality-built vehicle that meets their expectations.”

“We work very closely with Ford, as with all our suppliers, to maintain the integrity of the purchased components in order to provide a superior product for our customers in the market place,” said Winnebago Director of Quality Control Chuck Hughes. “We believe we have excelled in Ford’s Truck Quality Program due to the advanced technology we utilize in the development and manufacturing process of our motorhomes with industry-leading designs, as well as by employing seasoned manufacturing engineering staffs and manufacturing management with the commitment to adhere to these stringent guidelines. It continues to be a priority for us in order to meet and exceed our customers’ expectations for the quality found in each Winnebago Industries’ product that we build.”

 

Winnebago Adjusts to Slow Market Conditions

Winnebago Industries’ fiscal first-quarter profit tumbled 73% on lower deliveries of recreational vehicles and higher production costs, company officials said Thursday (Dec. 15).

The Mason City Globe Gazette reported that earnings fell short of Wall Street predictions and Winnebago shares fell 18 cents, or 2.6%, to $6.63 in morning trading but rebounded in afternoon trading, down just 2 cents.

“We knew going into the first quarter of this fiscal year, we didn’t see any reason numbers would be like the first quarter of last year,” said Randy Potts, Winnebago president and CEO, during a conference call. “During the fall of 2011, the RV market actually picked up some momentum. The market stalled out early in the spring and it’s a slow market again.”

Although the market has slowed, Forest City, Iowa-based Winnebago will continue to find ways to reduce costs, increase efficiency and to grow the company’s profit, Potts said. One way is to continue to review possible purchases that can add to the company’s product line, Potts said.

The Mason City Globe Gazette reported that Potts said the company may be able to announce a possible merger or acquisition during the fiscal year.

Sales may have slowed, but Winnebago is making gains in several areas, Potts said. Sales of the higher-priced Class A models helped contribute to Winnebago’s operating and net profit in the first quarter of the fiscal year.

Although sales in some areas improved and revenue increased by 6.6% over the same period last year, overall wholesale shipments were down and consequently, some work weeks were cut. Shortened work weeks are based on the number of models needed to fill orders, according to Potts.

“Our goal is to not build unsold products,” he said. “When you see motorhomes in our yard, the vast majority are spoken for.”

According to the Mason City Globe Gazette, cutting the number of days employees work allows Winnebago to adjust to sales but also allows it to maintain a stable work force.

“It allows to maintain our (employee) base” rather than making layoffs or cuts, Potts said.

Although sales and shipments to wholesale buyers were disappointing in the first quarter, Potts said there were some optimistic indications sales will improve.

Dealer response to new motorhome products at the National RV Trade Show in Louisville, Ky. was positive, Potts said. Dealers also responded positively to models from the SunnyBrook and Winnebago towable lines, he said.

While SunnyBrook, based in Elkhart, Ind., and bought by Winnebago in late 2010, isn’t yet profitable, Potts expects it will be before the fiscal year 2012 ends.

 

Winnebago Profits Decline in 1Q, Sales up 6.6%

Winnebago Industries Inc. today (Dec. 15) reported financial results for the company’s first quarter of fiscal year 2012, ended Nov. 26.

Revenues for the first quarter were $131.8 million, an increase of 6.6%, versus $123.7 million for the first quarter of fiscal 2011. Included within consolidated revenues was $10.1 million associated with towable products. Winnebago reported an operating profit of $627,000 for the quarter versus $4.9 million the previous year. Net income for the first quarter fell 73% to $1 million from $3.8 million for the first quarter of fiscal 2011. On a diluted per share basis, the company had net income of $0.04 for the first quarter of Fiscal 2012 compared with $0.13 for the first quarter of fiscal 2011.

The first quarter was negatively impacted by lower motorhome deliveries, as well as lower plant utilization due to shortened work weeks, and positively impacted by an increased average selling price due to a shift of mix within the higher-priced Class A products.

“While we are disappointed that wholesale shipments within the RV industry are fairly flat with shipments in calendar 2010, we have seen overall market share improvement, driven by our growth in the Class A diesel market segment,” said Winnebago CEO and President Randy Potts. According to Statistical Surveys Inc., Winnebago’s combined market share for U.S. Class A and C motorhomes was 18.8% calendar year to date through October compared to 18.4% for the same period in 2010.

“We were pleased with traffic and dealer interest in our products at the National RV Trade Show in Louisville, Ky., which was held Nov. 29 through Dec. 1, 2011,” continued Potts. “The Winnebago Industries display featured our Winnebago, Itasca and Era motorhomes, as well as our Winnebago and SunnyBrook brand towables. We had a number of new 2012 floorplans on display, including the spacious new Class A diesel Winnebago Journey and Itasca Meridian 42E tag-axle models that made their debut at the show. Our towables display was also very busy with many dealers viewing the new and/or redesigned Winnebago and SunnyBrook products for the first time.”

To view the entire report click here.

 

 

 

 

First Winnebago-Branded Fifth-Wheels Roll Out

Forest City, Iowa-based Winnebago Industries Inc. has released a pair of mid-profile fifth-wheel units by its new Winnebago Towables division.

While the company has debuted other fifth-wheel units following its purchase of SunnyBrook RV Inc. late last December, the Lite Five is the first fifth-wheel to carry the Winnebago brand.

“It’s an entry-level mid-profile fifth-wheel catered toward the half-ton customer, yet offers a lot of higher-end features,” said Fred Hershberger, national sales manager for Winnebago Towables. “It features a gel-coat fiberglass exterior to create that ‘glass-like’ finish, a chamfered front end for better turning radius, heated and enclosed underbelly, laminated walls and floors and aluminum roof trusses to remove weight out of the coach — we’re really focused on reducing weight with all Winnebago Towables products.”

Built at its Winnebago of Indiana facility in Middlebury, Ind., the Lite Five is initially available in two 32-foot floorplans, depending upon sleeping requirements and the furniture/galley arrangement. The 28FWBHS features curbside rear bunks and galley opposite a dinette and sofa in a streetside slideout, while the slightly longer 30FWRES incorporates slideouts on both sides of the main floor; the curbside extension houses the dinette and a pair of swivel rockers with a residential-style sectional sofa opposite, just aft of the galley. Both floorplans incorporate an island bed with memory-foam mattress up front, with the bathroom located between the bedroom and living quarters.

Both Lite Five units also feature hide-away computer stations, double-door refrigerator, high-capacity furnace, a large oven and patio awning. MSRPs start at about $30,000.

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