Winnebago Industries Inc. reports its earnings declined 48% during the quarter ended May 31 because of a 19% drop in sales revenue during the March-through-May period.
“I am extremely proud that Winnebago Industries remained solidly profitable during the quarter in spite of decreased volume, increased competitive pressures and start-up expenses from our new Charles City (Iowa) motorhome manufacturing facility,” said Bruce Hertzke, chairman, president and CEO.
“Shipments for the company’s motorhomes slowed during the third (fiscal) quarter as a result of dealers choosing to trim inventory levels due to low consumer confidence levels, uncertainty about the war in Iraq and the coming model-year changeover,” Hertzke continued. “The third quarter was also impacted by competitive programs within the motorhome industry.”
Winnebago operated its factories on four-day work weeks during the first six weeks of the third fiscal quarter, Hertzke said. In contrast, the company’s employees worked overtime during the same period a year earlier.
Winnebago’s net earnings totaled $9.3 million for the quarter ended May 31, compared with $18.1 million earned during the same period a year earlier.
The company’s sales revenue totaled $200.2 million in the quarter, compared with $245.9 million a year earlier.
The earnings decline in Winnebago’s third fiscal quarter offset the sharp earnings increases it experienced in the first half of fiscal year 2003. After the 39 weeks ended May 31, Winnebago’s net earnings totaled $37.9 million, a 1% decline from the $38.3 million it earned in the 40-week period that ended on June 1, 2002.
Also because of the strong first half, Winnebago’s sales revenue was up 2% in the 39 weeks ended May 31 to $619.5 million, compared with $605.1 million in the 40 weeks ended June 1, 2002.