Winnebago Industries Inc. executives are encouraged by the company’s third fiscal quarter results, despite reporting lower sales and earnings.
The company’s earnings declined 23% during the three months ended May 26 to $12.4 million and its sales revenue during the March-through-May period was down 8% to $197 million.
For the nine months ended May 26, Winnebago’s earnings were down 33% to $27.2 million and its sales were down 14% to $503.7 million.
“While lagging last year’s record results, we are very encouraged by our results compared to the RV industry in general,” said Bruce Hertzke, chairman, president and CEO. “With the recent series of interest rate reductions, stabilization of fuel prices and increase in consumer confidence levels, we anticipate improvement in market conditions throughout the remainder of the calendar year.”
In terms of retail market share, Winnebago was the top producer during the first four months of this year, when Class A and Class C motorhome sales are combined, Hertzke said, citing Statistical Surveys Inc. data. Winnebago’s retail market share in combined Class A’s and C’s was 18.2% during the first four months of this year, versus 17.1% a year-ago.
Here are more highlights from Winnebago’s report:
The company’s Class A shipments to dealers declined 16% during the three months ended May 26 to 1,641 units, and its Class C shipments were down 4% to 1,046 units.
Winnebago’s diesel engine Class A shipments increased 15% during the March-through-May period to 393 units.
Winnebago’s order backlog as of May 26 was around 1,200 units, compared with 1,800 units a year earlier.
Shipments of Volkswagen EuroVan campers, which Winnebago classifies as Class B motorhomes, declined 3% during the Mrch-through-May period to 264 units.