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FYI

Yahoo Message Number: 39345
Winnebago profit skids 73 pct in 3Q AP

Posted: 2008-06-20 08:14:59

DES MOINES, Iowa (AP) - Winnebago Industries Inc. said Friday its third quarter profit skidded 73 percent as high gas prices, tighter credit and a soft economy drive motor homes sales lower industrywide.

The Forest City-based manufacturer earned $3 million, 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 percent 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."

Olson said the industry has seen a decrease in motor home sales of more than 26 percent for the first four months of this year and a decline of more than 30 percent in both March and April, typically strong sales months.

He said an industry trade group predicts sales volumes to fall to levels not seen since 1991.

Winnebago announced earlier this month plans to close its Charles City factory, eliminating 270 salaried and hourly employees. Olson said the plant closure will occur by Aug. 1.

He said additional consolidation is under way to reduce overhead costs. The restructuring will cost the company $2.5 to $5.5 million in charges in the fourth quarter.

The company is one of the nation's leading manufacturers of motor homes, which are sold under the Winnebago, Itasca and ERA brand names.

On the Net: Winnebago Industries Inc.: http://www.winnebagoind.com
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FYI

Reply #1 –
Yahoo Message Number: 39887
11:00AM Monaco Coach announces relocation of Wakarusa and Elkhart Production (MNC) 2.74 -0.34 : Co announces that it will relocate all service and production operations in Wakarusa, Elkhart and Nappanee, Indiana and permanently cease operations at those locations. The shutdown is presently scheduled for approximately September 17, 2008. "We have implemented several successful initiatives over the past 18 months in an effort to size our business to match declining market demand. However, market conditions have continued to deteriorate, and we do not see significant improvements occurring in the near future. Therefore, the co finds it necessary to take further action by implementing a significant capacity reduction." Approximately 1,400 hourly and salaried employees will be impacted by the move, or 33% of the Company's total workforce. Monaco Coach Corporation will still maintain a significant presence in the Northern Indiana area with approximately 700 employees at its Warsaw, Milford and Goshen operations. The moves, once completed, are expected to reduce costs by over $12 million per quarter. One-time costs associated with the move will be approximately $7.5 mln in Q3, including employee compensation expenses. The co has created a compensation package for its employees who continue to work through the shutdown and relocation assistance for any employees moving to Oregon. The co is evaluating the impairment charges that will be taken due to the idling of the Indiana facilities, which have a current book value of $47.9 mln. (stock is halted)

FRANK ALLURE 31425