The nation’s leading motor home maker reports stronger-than-expected quarterly profits as its backlog grows due to rebounding demand.
Forest City-based Winnebago Industries reports revenues in the fourth quarter, which ended August 31st, rose almost 32% to $214.2 million.
Revenues for Fiscal Year 2013 were $803.2 million, an increase of 38% compared to Fiscal ’12.
CEO Randy Potts says demand continues for their products with the fourth quarter being the sixth consecutive quarter of increased sales order backlogs.
Potts says the backlog is a “good reflection of the strength of the market,” showing the dealer base is “very anxious to get products.”
He says the backlog is comprised of a number of different things including forward orders and some new product that is just entering the pipeline. Potts says the public’s response to different products they offer has helped boost sales.
He says some product lines are seasonal, but they are always active in new product development, so naturally when a new product is launched dealers are wanting it on their lots. Potts says the company has to stay ahead of the game with its product lines to make sure sales continue to be in positive territory.
Potts says Winnebago always keep the product line fresh and sometimes that means developing new products as well as continually evolving products. He says if some offering is not as successful as it needs to be, they are going to not wait until the next model year to make changes.
Fourth-quarter net income was down 74% to $10.6 million due to tax impacts. A tax benefit was recorded in the fourth quarter of Fiscal Year 2012 due to a $37 million reduction in the valuation allowance on deferred tax assets that was established in Fiscal Year 2009. Excluding the non-cash tax benefit of the reduction in valuation allowance, net income for the fourth quarter of last year was $4 million.
By Bob Fisher, KRIB, Mason City