Winnebago Industries Reports Lower Q4 Profit On Absence Of Tax Benefit

(RTTNews) - Winnebago Industries Inc. (WGO), a recreation vehicle manufacturer, reported fourth-quarter net income of $10.6 million, or $0.38 per share, compared to $40.9 million, or $1.41 per share, last year. A tax benefit was recorded in the fourth quarter of prior year due to a $36.9 million reduction in the valuation allowance on deferred tax assets that was established in fiscal 2009. Excluding the non-cash tax benefit of the reduction in valuation allowance, net income for the fourth quarter of prior year was $4.0 million or $0.14 per share.

On average, four analysts polled by Thomson Reuters expected the company to report profit per share of $0.27 for the quarter. Analysts' estimates typically exclude special items.

The fourth quarter as compared to prior year was positively impacted by increased motor home deliveries, improved gross margin due to better variable and fixed cost absorption and incremental leverage in operating expenses which resulted in a 3.2 percentage point improvement in operating margin, the company said.

Revenues were $214.2 million, an increase of 31.8%, from $162.5 million prior year. Analysts expected revenue of $201.56 million for the quarter.