Winnebago CEO Michael Happe says the company plan to feature both motorized and recreational vehicles has paid off.
He says they made good progress in the third quarter to transform the company into a larger and more balanced organization. Happe says the acquisition of the Grand Design towable company along with an increase in their own towables, they increased revenues by 75 percent compared to last year. Gross profit was $70.8 million — up by 134 percent compared to the 2016. Happe says the revenue breakdown is now split evening among the motorized and the towable lines.
“This is a significant transition from 18 months ago when more than 90 percent of our revenues were generated solely by the motorized segment. We are now position to compete for market share across much of the R-V industry,” Happe says. He says they improved on the gross profit margins that had hit the highest level in nearly a decade in the second quarter.
He says the gross margins improved even further in the third quarter to 14-point-nine percent — with is a 380 point basis improvement from a variety of factors. Happe made his comments during a conference call with investors.
(Reporting by A. .J Taylor, KIOW, Forest City)