Instead of adding to the bottom line now, Winnebago Industries Inc. chose to add for the future, company President and CEO Randy Potts reported in a Thursday conference call following release of its third quarter financials.
As reported by the Mason City Journal Gazette, the motorhome manufacturer based in Forest City, Iowa posted a net income of $11.5 million for the third quarter ending May 30 compared to $11.4 million in the same quarter of fiscal year 2014.
The company had a 7.1% increase in revenue over the same period last year. Revenue was $266.6 million compared to $247.7 million in fiscal 2014. Operating income increased to $16.1 million from $15.6 million in fiscal 2014. (see related story).
Potts said investments in strategic initiatives such as Enterprise Resource Planning, Product Life Cycle management, strategic outsourcing and the purchase of plants in Wavery and Middlebury, Ind., have taken money from the company’s bottom line this past quarter.
“All these investments we make now take more from our bottom line, but those will make our bottom line better in the future. They will strengthen and make a more perpetual (better bottom line) going forward,” Potts said.
“We are pleased with the quarter,” Vice President and Chief Financial Officer Sarah Nielsen said.
Highlights include the performance of the company’s B vans made in Lake Mills, the profit in towables, the performance in rentals and the overall sales of company products, Potts said.
Changes the company has made in response to a tight labor force in North Iowa also have helped and will have a positive impact in the future, Nielsen and Potts said.
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