Winnebago Industries has reported its financial results for the fiscal 2019 third quarter, showing revenues were $528.9 million, a decrease of 5.9 percent compared to $562.3 million for the fiscal 2018 period.
Gross profit was $86.6 million, an increase of 1.3 percent compared to $85.5 million for the fiscal 2018 period. Operating income was $49 million for the quarter, an increase of 1.4 percent compared to $48.3 million in the third quarter of last year, and was unfavorably impacted by the restructuring costs associated with moving our diesel manufacturing from Junction City, Ore., to northern Iowa, totaling $1.1 million.
Net income was $36.2 million, an increase of 11.2 percent compared to $32.5 million in the same period last year.
“Despite a moderate decrease in overall sales in a difficult RV wholesale market, consolidated margin continued to expand, primarily due to the strength of our dual-branded towable segment,” said Michael Happe, president and CEO. “I want to thank all of our Winnebago Industries employees for their dedication to making the company a trusted leader in outdoor lifestyle solutions. Their hard work and flexibility during the quarter is appreciated as we continued to manage output during these past several months of marketplace volatility.”
Revenues for the motorhome segment were $160.2 million, down 34.6 percent from the prior year driven by decreases in both Class C and Class A unit sales as dealers continue to lower their inventories. Class B unit sales and motorhome segment profitability were also down versus the prior year due to a temporary, but material, disruption in chassis supply by one of Winnebago’s strategic suppliers, which had a significant impact on shipment availability for two of its most popular Class B units.
Supply is improving during the early part of our fourth quarter, the company reported. Winnebago’s expects its Class B portfolio to return to strong performance in the back half of its fourth quarter and during fiscal 2020.
Revenues for the towable segment were $346.8 million for the third quarter, up 10.8 percent from the prior year, driven particularly by the strength of the Grand Design RV brand. Segment Adjusted EBITDA was $57.2 million, up 26 percent over the prior year.