A strong upturn in towable shipments helped lift Winnebago, which reported increased earnings on slightly lower revenue during the quarter ending Feb. 27, compared to 2015.
Revenues for the fiscal 2016 second quarter were $225.7 million, a decrease of 3.8 percent, compared to $234.5 million for the fiscal 2015 period.
Operating income was $13.5 million for the current quarter, an improvement of 13 percent compared to $11.9 million in the second quarter of last year.
Fiscal 2016 second quarter net income was $9.4 million, an increase of 15.5 percent compared to $8.1 million in the same period last year.
Total motorhome deliveries for the company during the period declined 3.4 percent, compared to 2015 second quarter numbers while towable shipments rose 57.7 percent.
“While we are pleased with the improved profitability delivered this quarter and the strong continued momentum of our towables business, we are mindful of lower motorized revenues against the industry's strong fundamentals,” President and Chief Executive Officer Michael Happe said. “Our motorized team will continue to focus on delivering the industry's highest level of product quality while working to create sustainable, increased levels of manufacturing output.
Consolidated revenues decreased year over year due primarily to lower motorized unit shipments of 3.4 percent, and the company's exit of aluminum extrusion sales to outside customers. Partly offsetting the decline was revenue growth of 33.8 percent in towables due to an increase in unit deliveries.
“With the success of recent new products, a current robust backlog, and ongoing investments in new systems and facilities, we believe we have a strong foundation to continue to build future value for our dealers, customers, and shareholders.”
Gross margin improved year-over-year in the second quarter due in part to improved product mix and the realization of cost-saving benefits related to the company’s strategic sourcing initiative. The improvement was partly mitigated by higher manufacturing costs.