Want further evidence the economy is on the mend? Well, look no further:
Winnebago Industries, Inc. (NYSE:WGO), one of the leading United States (U.S.) motor home manufacturers, today reported continued improvement in financial results during the Company's first quarter of fiscal year 2011.
Revenues for the first quarter ended November 27, 2010 were $123.7 million, an increase of 52.7 percent, versus $81.0 million for the first quarter of Fiscal 2011. The Company reported an operating profit of $4.9 million for the quarter, versus an operating loss of $6.0 million for the first quarter of Fiscal 2010. Net income for the first quarter was $3.8 million versus a net loss of $1.3 million for the first quarter of Fiscal 2010
Motor home deliveries jumped 40% while Winnebago dealer inventory was up 32%.
Dealer inventory increased 20.7 percent with 2,066 Class A, B and C motor homes on our dealers' lots as of November 27, 2010, compared to 1,567 on November 28, 2009.
of concern though:
Winnebago Industries' sales order backlog was 0 Class A, B and C motor homes as of November 27, 2010, a decrease of 100.0 percent compared to the end of the first quarter of Fiscal 2010. "
Now think about it: RVs are one of the most discretionary products on the market. When we see an uptick in sales (and at higher margins to boot), this is a good sign. My enthusiasm, however, is held in check by their backlog.
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