Wednesday, October 19, 2005

Winnebago profits down but sales still good

“Without a doubt, we had a good year, a very good year,” Winnebago CEO Bruce Hertzke said last week after the company reported fourth-quarter and fiscal-year earnings. “It’s still the second-best year in our history, and I think that says something about the strength of Winnebago.”

The company reported revenues of $992 million, down from $1.1 billion a year ago but still the second-best revenue year in the history of the company. And the company’s 2005 income of $65.1 million, while dropping from $70.6 million, represents a 20 percent increase over a then-record income of $54.1 million in 2002.

Hertzke said higher gas prices have led to reduced consumer confidence, a key indicator for motor-home sales.

“It would be foolish to say gas prices don’t have an affect on us,” Hertzke said, “but the reason is not necessarily the cost of fuel but it’s how it affects consumer confidence. ... The reality is motor homes are luxury items, and that means we’re a cyclical business.” Full Story...
VIP - America's RV Insurance Specialist

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