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Winnebago reports 23.9% revenue loss in third quarter

Winnebago reports 23.9% revenue loss in third quarter

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Winnebago Industries reported its financial results for its third quarter in fiscal year 2020 with revenues decreased by 23.9 percent year over year to $402.5 million, $126.4 million less than the fiscal year 2019 period.

The company attributed the loss to the COVID-19 pandemic, saying the results were impacted by the unprecedented series of events related to the pandemic, including the suspension of manufacturing operations and disruptions across its dealer network, supply chain and end consumers during most of the quarter, which ended in May.

“Our third fiscal quarter was a uniquely challenging time for Winnebago Industries, as it spanned the most intense portion of the unexpected COVID-19 pandemic in the U.S.,” President and Chief Executive Officer Michael Happe said.

Revenues for Newmar, which was acquired in the first quarter of FY2020, were $88 million, and revenues excluding the new acquisition were $314.5 million, a decrease of 40.5 percent.

Winnebago Industries

Employees make their way to their seats in advance of Vice President Mike Pence's visit to Winnebago Industries in Forest City in mid-June.

Gross profit was $32 million, which is $54.6 million less than the FY2019 period. Operating income was an $8.2 million loss for the quarter, compared to the operating income of $49 million in last year’s third quarter. The net income was also a loss of $12.4 million, compared to the net income of $36.2 million in the same period last year.

Some of the measures taken included shutting down production facilities, including the one in Forest City, for about a month, paying employees’ wages for two weeks, and, as the facilities were preparing to reopen, laying off 79 salaried and non-exempt employees in the Forest City facility.

The company said its financial position remains strong mainly due to its variable cost structure, entering the crisis with a “very healthy cash balance” and much additional capacity under its revolving credit facility if needed.

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