Winnebago earnings up, revenue down

Lower fuel prices are translating into higher sales of travel trailers, fifth wheels and large motor homes for Winnebago Industries. But the Iowa-based recreational vehicle manufacturer is experiencing lower deliveries of smaller motor homes.

Winnebago reported net income of $9.4 million, or 35 cents per share, for its fiscal second quarter that ended Feb. 27, up 15.5 percent from $8.1 million, or 30 cents per share, for the same period last year.

Revenue fell 3.8 percent to $225.7 million in the second quarter of fiscal 2016 from $234.5 million in the second quarter of fiscal 2015.

Deliveries of the Forest City company's large Class-A RVs increased three percent in the quarter. That marked a sharp reversal of the double-digit percentage declines that Winnebago experienced at the larger end of its product line in past quarters.

Sales of Winnebago's smaller Class-B and -C motor homes slid in the second quarter of fiscal year 2016, with Class-B deliveries posting a seven-percent drop and Class-C units recording an eight-percent decline.

Travel trailer and fifth-wheel sales posted large gains, increasing towable RV deliveries 58 percent from the second quarter of fiscal 2015.

Motor home backlogs rose 23 percent to 2,792 units, and towables backlogs increased 29 percent to 168 units.

Michael Happe, Winnebago president and CEO, indicated he was not satisfied with the financial results for the second quarter of fiscal 2016.

'While we are pleased with the improved profitability delivered this quarter and the strong continued momentum of our towables business, we are mindful of lower motorized revenues against the industry's strong fundamentals,” Happe said in a news release.