Winnebago Reports Improved Results for the Second Quarter

03/18/2010

Winnebago Industries reported improved financial results for second quarter 2010. Revenues for the quarter were $110.5 million, up 247 percent, versus $31.8 million for second quarter 2009.

Winnebago said second quarter results were positively impacted by a significant increase in motorhome unit deliveries, particularly in the Class A category, which resulted in an increase in production volumes and greater efficiencies and higher utilization of the manufacturing facilities.

The Forest City, Iowa-based manufacturer reported an operating loss of $1.9 million for the quarter, versus an operating loss of $18.6 million for the second quarter of fiscal 2009. Net income for the second quarter was $706,000 versus a net loss of $10.4 million for the second quarter of fiscal 2009.

Revenues for the first six months of fiscal 2010 were $191.5 million, an increase of 89 percent, versus revenues of $101.2 million for the first six months of fiscal 2009. The company reported an operating loss of $7.8 million for the first six months of fiscal 2010, versus an operating loss of $35.5 million for the first six months of fiscal 2009. Net loss for the first six months of fiscal of 2010 was $638,000, versus an operating loss of $2 million for the first six months of the last fiscal year.

"We are pleased to see a continued trend of sequential growth in revenues and gross profit," said Bob Olson, Winnebago Industries' chairman, CEO and president. "After hitting our lowest shipment levels in decades during the second quarter last year, we have seen improvement in revenues and gross profit each quarter since that time. We also saw a sequential increase in dealer inventory this past quarter for the first time in two years as we increased our production levels to satisfy our sales order backlog. While we are encouraged with these improvements, the economic outlook remains uncertain and we believe retail sales will be the key driver to sustain our recovery and for continued growth going forward."

Winnebago's sales order backlog was 1,159 motorhomes at Feb. 27, an increase of 246.0 percent compared to the end of the second quarter of fiscal 2009.