Winnebago Posts Higher Q3 Sales, Profits on Strong Price and Demand
By Will Feuer
Winnebago Industries Inc. reported higher fiscal profit in the third quarter as demand for its recreational vehicles remained strong and the company raised prices to offset rising costs and supply chain issues.
The recreational vehicle maker posted net income of $117.2 million in the three months ended May 28, up from $71.3 million a year earlier. Earnings were $3.57 per share, down from $2.05 per share.
Excluding one-time items, including amortization and fair value adjustments, adjusted earnings were $4.13 per share. Analysts had expected adjusted earnings of $2.96 per share, according to FactSet.
Revenue soared 52% to $1.46 billion. Analysts polled by FactSet had expected revenue of $1.21 billion.
Organic sales, which eliminates the effect of Winnebago’s acquisition of Barletta Pontoon Boats, rose 41%, driven by higher prices and shipments related to the company’s backlog.
Chief Executive Michael Happe said the company enjoyed a strong selling season in the spring.
“The unique strength of our brands has allowed Winnebago Industries not only to gain market share, but also to successfully take ongoing pricing action to offset significant component and material cost inflation and improve product performance. margins in our segments,” he said.
Supply chain challenges and inflationary pressures are expected to persist in the current quarter and into fiscal 2023, Happe said.
Write to Will Feuer at [email protected]