Winnebago Industries Inc. reported today (Oct.13) a decrease in earnings and revenues for the motorhome builder’s fiscal fourth quarter and year end, citing the negative impact of lower consumer confidence and higher fuel costs on sales.
The Forest City, Iowa, company said it expected those trends, along with a shift toward “lower priced motorhomes,” to extend into next year and the company was cutting production to reflect lower demand.
Net income for the fourth quarter, ended August 27, was $15.4 million compared to $19 million a year ago while sales during the three-month period slipped to $231.5 million from $283 million.
Net income for fiscal 2005 was $65.1 million compared to $70.6 million the year prior on sales of $992 million versus $1.1 billion.
“Winnebago Industries’ fiscal 2005 results represent the second best year in the company’s 47-year history,” said Bruce Hertzke, chairman and CEO. “While revenues and earnings were lower than last year, I am still extremely proud of the performance of the company.”
Winnebago noted that its sales order backlog was 2,059 units at August 27, compared to the backlog of 2,541 units in 2004, reflecting the decreased demand.