Winnebago Industries Inc. said Friday, June 20th, its third quarter profit skidded 73 per cent as high gas prices, tighter credit and a soft economy drive motor homes sales lower industry wide.
The Forest City-based manufacturer earned $3-million (U.S.), or 10 cents a share, in the three months ended May 31 compared with a profit of $11.3-million, or 35 cents a share, a year ago.
Sales fell almost 40 per cent to $139.7-million from $231.7-million a year ago.
The latest net income figure included a tax benefit of $8.9-million.
The company reported an operating loss of $6.9-million compared with an operating income of $14.7-million a year ago.
Analysts surveyed by Thomson Financial expected earnings of 3 cents a share on higher sales of $157.6-million. The estimates typically exclude one-time items.
“The motor home market has changed significantly in the past year, with dramatic declines in the past few months,” CEO Bob Olson said in a statement. “Discretionary purchases have declined in the United States as the country is faced with unstable fuel prices, consumer confidence at 16-year lows and a tighter credit environment.”