Winnebago Industries Inc. reported lower earnings and revenues for its fiscal 2007 first quarter, ended Nov. 25, citing continued weakness in the motorized market that will carry into the company’s second quarter.
“While we remained solidly profitable, the motorhome market continues to be challenging,” said Winnebago Chairman and CEO Bruce Hertzke. “The first quarter of fiscal 2007 was negatively impacted by lower motorhome deliveries, particularly of higher-priced models in all of our product classes.
“We expect continued weakness in our seasonally slower second quarter due to a challenging market environment and reluctance on the part of our dealer partners to increase inventory during the winter months.”
The Forest City, Iowa-based motorhome builder reported net income for the first quarter was $7.9 million compared to $14.6 million a year ago while sales fell 13% to $201.8 million from $232.3 million.
Winnebago noted that other factors negatively impacting the quarter were increases in retail promotional programs, raw material commodities, health care costs, as well as general and administrative costs that resulted primarily from an increase in stock-based compensation in the first quarter of fiscal 2007.
Winnebago said the company’s new product offerings at the recent National RV Trade Show in Louisville, Ky., were well received by the dealer body, including units that move the company into a lower-priced retail arena.
“The new value-priced Class A gas Winnebago Vista and Itasca Sunstar are in production now and will be arriving at our dealer locations in coming weeks,” said Winnebago President Ed Barker. “The exciting new 2008 Class A rear-engine, gas and diesel pusher Winnebago Destination and Itasca Latitude will begin arriving at our dealer locations in early spring.”