Tags: Winnebago | RV | profit | economy

Winnebago Posts a Higher-Than-Expected Profit; Shares Rise

Thursday, 17 Oct 2013 11:11 AM

Winnebago Industries Inc., the No. 1 U.S. motor-home manufacturer, reported a stronger-than-expected quarterly profit and said its backlog continued to grow due to rebounding demand from both dealers and consumers.

Its shares rose more than 5 percent in early trading on the news.

The company, small but closely watched because of the view it provides on spending on big-ticket discretionary items, said its sales order backlog grew for the sixth consecutive quarter, a reflection of dealer optimism about the economic recovery.

Winnebago reported a profit of $10.6 million, or 38 cents a share, for the fourth quarter that ended on Aug. 31, compared with $40.9 million, or $1.41 a share, a year earlier.

Analysts on average expected earnings of 28 cents a share, according to Thomson Reuters I/B/E/S. Excluding a year-earlier noncash tax item, Winnebago's profit more than doubled from 14 cents a share.

Sales rose 32 percent to $214.2 million, while analysts had forecast $208 million.

In a statement, Chief Executive Officer Randy Potts said deliveries to Winnebago's network of independent dealers were strong and that consumer demand had increased for its RVs, which range in price from about $65,000 to more than $300,000.

Winnebago is the latest RV maker to report strong growth in consumer and dealer demand for motor homes.

Last month, Elkhart, Indiana-based rival Thor Industries Inc., which makes RVs sold under the Thor, Airstream, Heartland and Dutchmen brand names, reported a 35 percent increase in fourth-quarter profit on a 19 percent increase in overall sales.

Analysts say both Thor and Winnebago have benefited from the RV industry's shakeout that followed in the wake of the economic downturn, which has left fewer manufacturers in the space and the top three accounting for nearly 80 percent of all sales.

Industry shipments to dealers, which peaked at 71,800 motor homes, tumbled to just 13,200 motorhomes in 2009, according to the Recreational Vehicle Industry Association trade group. That sent several manufacturers into bankruptcy. RVIA expects manufacturers to ship 37,100 units in 2013, up 32 percent from 2012.

In early trading on the New York Stock Exchange, Winnebago shares were up $1.59, or 5.8 percent, at $28.87.

© 2017 Thomson/Reuters. All rights reserved.

 
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Winnebago Industries Inc., the No. 1 U.S. motor-home manufacturer, reported a stronger-than-expected quarterly profit and said its backlog continued to grow due to rebounding demand from both dealers and consumers.
Winnebago,RV,profit,economy
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2013-11-17
Thursday, 17 Oct 2013 11:11 AM
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