Winnebago Industries Q4 Profit Rises

(RTTNews) - Winnebago Industries Inc. (WGO) reported that its net income for the fourth quarter increased to $13.1 million, or $0.49 per share, from $11.7 million, or $0.43 per share, in the same period last year.

Operating income was $18.9 million for the current quarter, an improvement of 11.7% compared to $16.9 million in the fourth quarter of last year.

Revenues for the Fiscal 2016 fourth quarter ended August 27, 2016, were $263.3 million, an increase of 4.9%, compared to $251 million for the Fiscal 2015 period. Fourth-quarter Fiscal 2016 consolidated revenues improved year over year due primarily to higher shipments of 3.0% in motorized units and 57.5% in towables. Current quarter revenues were impacted negatively by $5.4 million as the Company exited the sale of aluminum extrusions to customers during the year.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.47 per share and revenues of $252.52 million for the fourth-quarter. Analysts' estimates typically exclude special items.

Fourth-quarter gross margin improved year over year, primarily due to lower raw material costs resulting from the Company's strategic sourcing initiative, as well as favorable product mix and lower warranty expense.

President and Chief Executive Officer Michael Happe said, "Fourth-quarter revenues increased year over year, driven by continued strong growth in our towables business as well as modest improvement in motorized shipments."

On October 12, 2016, the Company's board of directors approved a quarterly cash dividend of $0.10 per share payable on November 23, 2016, to common stockholders of record at the close of business on November 9, 2016.

Happe said, "We look to Fiscal 2017 as an important year in the evolution of Winnebago. We are just beginning on our journey to drive operational excellence in our manufacturing and supply value chain and instill a stronger performance culture still very much focused on our customers."