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Forest City, Iowa, motorhome builder Winnebago Industries Inc. reported a 25% decline in third-quarter earnings, impacted by prolonged market weakness and a shift in consumer demand toward lower-priced motorhomes.
Net income for the third quarter, ended May 27, was $13.2 million compared to $17.6 million for the same period last year. Winnebago noted that earnings included a stock option expense of $807,000.
Revenues during the three-month period decreased 13.6% to $220.3 million compared to $255 million a year ago.
For the first nine months, net income fell from $49.7 million the previous year to $35.4 million, which included a $3.1 million stock option expense. Revenues during the period declined 13.3% to $659 million from $760.5 million for the same period last year.
The company said its Class C products, including the fuel-efficient Winnebago View and Itasca Navion diesel lines, continued to perform well and “partially offset” flagging demand in the A sector.
“With continued sensitivity to fuel prices nationwide, our View and Navion diesel motorhomes, with fuel economy of 17-19 miles per gallon, have been extremely timely,” said Winnebago President Ed Barker. “During the third quarter, we also introduced the new 2007 Winnebago Access and Itasca Impulse value-priced Class C motorhomes to our dealers, and they have also been well received.
“I believe we have the best Class C lineup in our company’s 48-year history and look forward to continued market share improvement throughout calendar 2006.”
Winnebago’s sales order backlog was 1,642 units as of May 27, up from the backlog of 1,523 units at the end of the third quarter of fiscal 2005.