Sales Strong At Winnebago - Q4 Earnings Up 59% On Sales Of Larger Models

[hatrack]

DES MOINES (AP) — Winnebago Industries Inc.’s fourth-quarter earnings surged 59 percent, a reflection of increased sales of its larger and higher-profit motor homes. Its shares rose more than 7 percent in afternoon trading.

The manufacturer said Thursday it earned $14.8 million, or 49 cents a share, in the three months ended Aug. 25, up from $9.3 million, or 30 cents a share, a year ago. Sales rose 15.7 percent to $237.7 million from $205.4 million a year ago.

Analysts polled by Thomson Financial expected earnings per share of 41 cents on sales of $223 million. The earnings estimates typically exclude one-time items. Its shares rose $2.05, or 7.3 percent, to $30.26 in afternoon trading Thursday after rising as high as $32.42 earlier in the session. Analysts in a conference call with company officials applauded Winnebago’s performance despite the industry slump that has softened sales of motorized RVs since 2004.

CEO Bruce Hertzke told analysts that improved sales and profit margins were the result of the company introducing new diesel-powered larger motor homes. At a trade show in May, the company showed 91 models for 2008, about half were complete redesigns or newly introduced models, he said. The average selling price for the largest diesel-powered motor homes is about $172,590, up from $155,135 in the same quarter a year ago. The smaller gas-powered RVs were selling for an average of $63,139, up from $57,970 a year ago.

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http://www.charlescitypress.com/articles/2007/10/15/news/news03.txt

[BridgeTheGap]

1. Who can afford to put gas in a motor home?

What a waste!

[XemaSab]

2. Who said anything about driving it?

My cousin's getting one to live in. :P

Cheaper than paying a mortgage. :P

[BridgeTheGap]

4. You have a point there.

Don't you need some place to park it? At the folks' house, maybe?

[XemaSab]

5. Bingo

Her parents have a spread up in Mendocino county. :)

[greyl]

6. Plus, a spot at a campground is still much cheaper than traditional homeownership.

It's also a valid and environmentally friendly lifestyle choice even if one isn't financially forced into it.
I'd choose a decent motorhome with a little bit of riverside land over an apartment surrounded by asphalt any day.

[pscot]

7. The nearest Walmart parking lot

You can walk to shop. Saves energy.

[diane in sf]

9. Walmart leaves the parking lot lights on all night so you can run your solar panels

and watch tv and let them pay for it.

[juno jones]

3. The larger ones are selling

because more people, older ones especially, are buying them for housing.

[One_Life_To_Give]

8. Boomers Retirement

Most people I have seen with the larger Diesel Pushers are either retired or soon will be. If at retirement age you can afford to spend $200K on the rig and a tow car to trail behind you. The price of diesel isn't that big an issue. Besides it's not like you can take the money with you.
Some will sell there home and live in the warmer climates during the winter and go see the grandkids in the summer.