Imagine what it would cost to fire up a Winnebago and drive from Chicago to Arizona with fuel prices near $4.00 per gallon.
But it was shares of Winnebago Industries (WGO), the Forest City, Iowa producer of giant motor homes, that got fired up Thursday despite a surprise second-quarter loss. The stock rose 3%, or 27 cents, to $9.17, after sinking 4% in pre-market trading.
The maker of recreational vehicles, with a market capitalization of $263 million, says it has a strong order backlog. Flights and a tour of Europe can get expensive, especially for a big family; the cheapest of the 2012 Winnebagos starts at around $70,000.
Winnebago reported an operating loss of $1.2 million for the second quarter of fiscal 2012. That compares to an operating profit of $4.1 million for the prior second quarter, which included a $3.5 million pre-tax benefit related to “lower actual inventory scrap and production loss.” On a diluted per share basis, the company reported a net loss of 3 cents for the second quarter, compared to net income of 11 cents in the prior year quarter.
Revenue was $131.6 million, an increase of 23.5%, compared to $106.6 million in the prior quarter.
The company said in a prepared release that:
“Although revenues were higher as compared to the prior year primarily due to an increase in wholesale deliveries, the second quarter of fiscal 2012 was negatively impacted by increased discounts and continued aggressive pricing strategies.”
Winnebago CEO Randy Potts added:
ÂWhile we saw an increase in year over year wholesale shipments of both our motor homes and towables in the second quarter, we are disappointed with our financial results. However, we believe that we are better positioned for the future with a stronger sales order backlog as compared to the prior year.”
