Winnebago has reported its financial results for the third quarter of fiscal 2018, showing revenues were $562.3 million, an increase of 18 percent compared to $476.4 million for the same period last year. Gross profit was $85.5 million, an increase of 20.8 percent compared to $70.8 million. Gross profit margin was 15.2 percent in the quarter, an increase of 30 basis points versus 14.9 percent last year, driven by the continuation of accelerated growth in the towable segment.
“Winnebago Industries delivered strong top and bottom-line growth, margin expansion and market share gains in the quarter. New product performance, our evolving portfolio mix, and agility in managing cost pressures all contributed nicely to our third quarter results,” said Michael Happe, president and CEO of Winnebago. “The towable segment saw strong organic top-line growth and increased profitability, in addition to delivering another period of retail market share expansion. Our strong performance to-date in fiscal 2018 and confidence in our market share trends for towable RVs is reflected in our capacity expansion efforts during the quarter, as we broke ground on our Winnebago-branded towable expansion project and started up a new Grand Design RV production line.”
Operating income was $48.3 million for the quarter, an improvement of 38.5 percent compared to $34.9 million in the third quarter of last year. Fiscal 2018 third quarter net income was $32.5 million, an increase of 67.7 percent compared to $19.4 million in the same period last year.
“During the quarter, and as previously announced, we distributed a portion of our tax reform savings to our hardworking Winnebago Industries employees through one-time bonus payments,” said Happe. “Additionally, we made a meaningful donation to our Winnebago foundation which will help us, in the future, to give back to the communities in which we operate.”
In the third quarter, revenues for the motorized segment were $249.2 million, up 3.1 percent from the previous year. Revenues for the towable segment were $313 million for the quarter, up 33.4 percent from the previous year, driven by strong organic growth across the Grand Design RV and Winnebago-branded product lines.
The company recorded a tax rate of 26.4 percent in the third quarter compared to a rate of 34.6 percent in the previous year. The reduction in the rate is related to the lower federal tax rate enacted in accordance with the Tax Cuts and Jobs Act.
“As always, we will work closely with our supplier base, and internally on cost savings initiatives, to lessen the impacts on our dealer network and end customers of any necessary increases. In the quarter, we announced the launch of an all-electric, zero-emission commercial vehicle platform in conjunction with a strategic partnership with Motiv Power Systems, a U.S. market leader in medium-duty electric vehicle chassis,” said Happe. “And earlier this month, but after the close of our fiscal third quarter, we announced our acquisition of Chris-Craft, an iconic marine brand and an industry leader in recreational boating. The addition of a premium marine brand aligns with our strategic initiative to expand the Winnebago Industries portfolio within the outdoor lifestyle market and provides a new revenue platform in an exciting marine market that will enable us to continue to drive improved profitability and shareholder value over the long term.”
