Winnebago Industries Inc., (NYSE: WGO), is a manufacturer of motor homes, a type of recreational vehicle or RV, in the United States. It is based in Forest City, Iowa.
The company was founded by Forest City businessman John K. Hanson in February 1958. At the time, the town, located in Winnebago County, Iowa, was undergoing an economic downturn, so Hanson and a group of community leaders convinced a California firm, Modernistic Industries, to open a travel trailer factory in a bid to revive the local economy.[1]
Surviving a rough beginning, the entire operation was purchased by five Midwesterners, with Hanson serving as president. In 1960 the name of the company was changed to Winnebago Industries. To improve quality, Winnebago Industries manufactured furniture and other components designed specifically for its travel trailers. One such innovation was the "Thermo-Panel," which was a strong, lightweight sidewall that was a characteristic of Winnebago products.
In 1966 the first motor home rolled off the Winnebago Industries assembly lines.[2] These motor homes were sold at a price approximately half of what was being charged for competitors’ models, which led to its ubiquity and popularity in the RV community. The brand name has become synonymous with "motor home" and is commonly used as a genericized trademark for such vehicles, whether they were produced by the company or not.[citation needed]
Through the 70s and into the 80s model names were influenced by the Native American tribe of the same name and included the Brave, Chief Black Hawk, the Indian, the Chieftain, and the Warrior. Older Winnebago RVs are often recognizable by the painted "w" (also called the "flying W") on the side of the vehicle, with a stripe that connects the front and back of the camper.
In 1973, the company introduced a new model, the Minnie Winnie, built on the Dodge B-series van chassis. It was about 19-1/2 feet (5.9 m) long (despite the name, longer than the shortest contemporary Brave model). Longer models were added through the years. This model continued (using Chevrolet or Ford chassis after 1980) until the name was retired after the 2006 model year, when at 30 feet (9.1 m), it was not exactly "minnie" anymore. As gas prices went up over time, the company made smaller models available, such as the "Winnie Wagon", with a low profile and pop-top.
The company also developed a line of smaller units slightly larger than a passenger van built using various bodies and powerplants from two European automobile and truck manufacturers. The "LeSharo" used Renault parts, and the "Rialta" has a VW T-4 (a.k.a. "EuroVan") cab, the 2.5 liter 5-cylinder motor, and the 2.8 liter VR6 motor. Distinct from the "Rialta", Volkswagen contracted to have the camper conversions of the T-4 to be done by Winnebago Industries, a radical departure from using the Germany-based Westfalia company that had become famous for building the VW Type 2 campmobile models since the 1950s (through 1991). This tradition continues today with Winnebago's use of the Mercedes-Benz Sprinter chassis.
The Winnebago Industries Charles City, Iowa manufacturing plant was closed on August 1, 2008. About 270 people were employed at the plant when production ended. According to a news release from the company, the Charles City, Iowa manufacturing plant was closed because of dramatic changes in the market since its opening in 2004. Winnebago officials credit the declining U.S. economy, higher fuel prices, decreasing consumer confidence and difficulties getting loans have contributed to a decrease in overall motor home demand. Retail sales have declined by double-digit percentages for seven of the last eight months for the industry. Yet, in 2009, a hardwoods department and "B-Van" department both reopened and now employ around 150 employees.
Winnebago Industries, Inc. is one of the largest manufacturers of mobile homes within the United States. Sold under the Winnebago, Rialta, Ultimate, Vectra, and Itasca brand names, these self-contained vehicles are aimed at the recreational and leisure markets through an extensive dealer network throughout the United States and Canada. Built with state-of-the-art computer-aided design and manufacturing systems, on highly efficient assembly lines similar to the automotive industry, the company has grown into one of the leaders in the industry. Winnebago Industries celebrated its 40th anniversary in fiscal 1998 by introducing new designs for over 75 percent of its motor homes.
Winnebago Industries, Inc. (Winnebago Industries), incorporated on February 12, 1958, is the United States manufacturer of motor homes, which are self-contained recreation vehicles (RV) used primarily in leisure travel and outdoor recreation activities. It sells motor homes through independent dealers under the Winnebago, Itasca and ERA brand names. Other products manufactured by Winnebago Industries consist primarily of original equipment manufacturing (OEM) parts, including extruded aluminum and other component products for other manufacturers and commercial vehicles. Its Forest City facilities have been designed to provide vertically integrated production line manufacturing. It also operates a cabinet products manufacturing facility in Charles City, Iowa. Its motor home bodies are made from various materials and structural components, which are laminated into rigid, lightweight panels. Body designs are developed with computer design and analysis and subjected to a variety of tests and evaluations to meet its standards and requirements. It manufactures a number of components utilized in its motor homes, with the principal exceptions being chassis, engines, generators and appliances.
Motor Homes
Winnebago Industries manufactures and sells Class A and C motor homes under the Winnebago and Itasca brand names. It manufactures Class A motor homes with gas and diesel engines. It manufactures Class C motor homes with gas and diesel engines. It Class A (gas) motor homes include Vista, Sightseer, Adventurer, Sunstar, Sunova and Suncruiser. Its Class A (diesel) motor homes include Via, Journey, Journey Express, Tour, Reyo, Meridian, Meridian V Class and Ellipse. Its Class C motor homes include Access, Access Premier, Aspect, View, View Profile, Impulse, Impulse Silver, Cambria, Navion and Navion iQ. These motor homes provide living accommodations for up to seven people and include kitchen, dining, sleeping and bath areas, and in some models, a lounge.
Optional equipment accessories include generators, home theater systems, king-size beds, and UltraLeather upholstery and a selection of interior equipment. With the purchase of any new motor home, Winnebago Industries offers a 12-month/15,000-mile warranty on the coach and, for Class A and C motor homes, a 3-year/36,000-mile structural warranty on sidewalls and floors. Its Class A and C motor homes are sold by dealers in the retail market.
Motor Home Parts and Services
Motor home parts and service activities represent revenues generated by service work it performs for retail customers at its Forest City, Iowa facility and parts it sell to its dealers. As of August 28, 2010, its parts inventory was approximately $2.2 million and is located in a 450,000-square foot warehouse.
Other Manufactured Products
Winnebago Industries manufacture aluminum extrusions, which are sold to approximately 70 customers. To a limited extent, the Company manufactures other component parts sold to outside manufacturers. It also manufactures commercial vehicles, which are motor home shells, primarily custom designed for the buyer's special needs and requirements, such as law enforcement command centers and mobile medical and dental clinics. These commercial vehicles are sold through its dealer network.
That optimism was short-lived, however. Revenues for the company plunged to $332.8 million in 1990 from $437.5 million a year earlier. Earnings continued to be in the red; this time the posted loss was $17.8 million. The effects of the Persian Gulf War--which drove up the price of oil and raised fears of an oil shortage at the gas pumps--undercut sales in the motor home division. In addition, the Cycle-Sat subsidiary continued to post operating losses. To stem losses, Winnebago began an austerity program in 1990 and increased the marketing of its Warrior and Spirit micro-mini motor home models, which offered superior fuel efficiency.
Fred Dohrmann, appointed chief operating officer of Winnebago in 1990, added the position of president to his nameplate in 1991 as the company continued to struggle amid the gathering recession. Company sales, dented by the impact of the Gulf War, continued a slide of 34 percent to $222.6 million for fiscal 1991. An earnings loss in 1991 was posted at $29.3 million, or $1.18 per share.
John K. Hanson termed the year a difficult one for the company. The manufacture of commercial vehicles was discontinued to direct more investment toward the recreational motor home division, the company's core business. Sales of motor homes in 1991, at $180.8 million, represented 81.2 percent of total company sales. In 1992 sales for the company increased to $294.9 million. The company, however, continued to lose money and posted a net loss of $10.5 million. Nonetheless, the recession had eased in 1992, and the Gulf War and its harmful trading effects had ended.
During the mid- and late 1990s, Winnebago Industries continued to struggle. Yet, by 1997, the company's management had implemented a comprehensive revitalization strategy that brought life back to the company. Most of Winnebago's non-RV holdings were sold off, and the company returned to what it did best, namely, manufacture recreational vehicles. All new 33- and 36-foot designs for the Winnebago Chieftain and Itasca Sunflyer, loaded with innovative and functional amenities such as a galley/coach slideout, a dinette/couch slideout, and a bed/wardrobe slideout where a queen-sized bed and mirrored wardrobe are moved out to reveal nearly 132 cubic feet of added living space, soon became the envy of the industry and two of the most popular RVs on the market. The company also made the commitment to install the latest technological advancements in RV manufacturing, thus resulting in the increase of its original equipment manufacturing program that brought in over $30 million in new sales during 1998. All of these measures contributed to a cash reserve of over $50 million by the end of fiscal 1998, and growing confidence within management that the company was ready to embark on a growth through acquisitions strategy, with the intention of enhancing its ability to build and market top-quality motor homes.
Although Winnebago Industries will need to work hard in order to maintain profitability, recent demographic studies indicate that the company should be confident about its future. Moreover, as long as there are people who want to travel in the comfortable and relaxing surroundings of their own motor home, Winnebago Industries will provide them with the most luxurious recreational vehicle on the market.
Principal Subsidiaries: Winnebago Acceptance Corporation; Winnebago R.V., Inc.; Winnebago Realty Corporation; Winnebago Products, Inc.
OVERALL
Beta: 2.43
Market Cap (Mil.): $359.66
Shares Outstanding (Mil.): 29.12
Annual Dividend: --
Yield (%): --
FINANCIALS
WGO.N Industry Sector
P/E (TTM): 19.99 18.05 21.66
EPS (TTM): 130.20 -- --
ROI: 10.17 4.07 1.89
ROE: 18.55 4.60 2.88
Statistics:
Public Company
Incorporated: 1958 as Modernistic Industries of Iowa
Employees: 2,800
Sales: $438 million (1997)
Stock Exchanges: New York Midwest Pacific
Ticker Symbol: WGO
SICs: 3716 Motor Homes
Name Age Since Current Position
Robert Olson 59 2011 Chairman of the Board, Chief Executive Officer
Randy Potts 52 2011 President
Sarah Nielsen 37 2005 Chief Financial Officer, Vice President
Raymond Beebe 68 1986 Vice President, General Counsel, Secretary
Roger Martin 50 2003 Vice President - Sales and Marketing
William O'Leary 61 2001 Vice President - Product Development
Daryl Krieger 47 2010 Vice President - Manufacturing
Robert Gossett 59 1998 Vice President - Administration
Donald Heidemann 37 2007 Treasurer
Brian Hrubes 59 1996 Controller
Gerald Kitch 72 2010 Lead Director
Jerry Currie 65 1996 Director
John Hanson 68 1996 Director
Joseph England 70 2001 Director
Irvin Aal 71 2004 Director
Lawrence Erickson 61 2005 Director
Robert Chiusano 59 2008 Director
Address:
605 W. Crystal Lake Road
Forest City, Iowa 50436
U.S.A.
The company was founded by Forest City businessman John K. Hanson in February 1958. At the time, the town, located in Winnebago County, Iowa, was undergoing an economic downturn, so Hanson and a group of community leaders convinced a California firm, Modernistic Industries, to open a travel trailer factory in a bid to revive the local economy.[1]
Surviving a rough beginning, the entire operation was purchased by five Midwesterners, with Hanson serving as president. In 1960 the name of the company was changed to Winnebago Industries. To improve quality, Winnebago Industries manufactured furniture and other components designed specifically for its travel trailers. One such innovation was the "Thermo-Panel," which was a strong, lightweight sidewall that was a characteristic of Winnebago products.
In 1966 the first motor home rolled off the Winnebago Industries assembly lines.[2] These motor homes were sold at a price approximately half of what was being charged for competitors’ models, which led to its ubiquity and popularity in the RV community. The brand name has become synonymous with "motor home" and is commonly used as a genericized trademark for such vehicles, whether they were produced by the company or not.[citation needed]
Through the 70s and into the 80s model names were influenced by the Native American tribe of the same name and included the Brave, Chief Black Hawk, the Indian, the Chieftain, and the Warrior. Older Winnebago RVs are often recognizable by the painted "w" (also called the "flying W") on the side of the vehicle, with a stripe that connects the front and back of the camper.
In 1973, the company introduced a new model, the Minnie Winnie, built on the Dodge B-series van chassis. It was about 19-1/2 feet (5.9 m) long (despite the name, longer than the shortest contemporary Brave model). Longer models were added through the years. This model continued (using Chevrolet or Ford chassis after 1980) until the name was retired after the 2006 model year, when at 30 feet (9.1 m), it was not exactly "minnie" anymore. As gas prices went up over time, the company made smaller models available, such as the "Winnie Wagon", with a low profile and pop-top.
The company also developed a line of smaller units slightly larger than a passenger van built using various bodies and powerplants from two European automobile and truck manufacturers. The "LeSharo" used Renault parts, and the "Rialta" has a VW T-4 (a.k.a. "EuroVan") cab, the 2.5 liter 5-cylinder motor, and the 2.8 liter VR6 motor. Distinct from the "Rialta", Volkswagen contracted to have the camper conversions of the T-4 to be done by Winnebago Industries, a radical departure from using the Germany-based Westfalia company that had become famous for building the VW Type 2 campmobile models since the 1950s (through 1991). This tradition continues today with Winnebago's use of the Mercedes-Benz Sprinter chassis.
The Winnebago Industries Charles City, Iowa manufacturing plant was closed on August 1, 2008. About 270 people were employed at the plant when production ended. According to a news release from the company, the Charles City, Iowa manufacturing plant was closed because of dramatic changes in the market since its opening in 2004. Winnebago officials credit the declining U.S. economy, higher fuel prices, decreasing consumer confidence and difficulties getting loans have contributed to a decrease in overall motor home demand. Retail sales have declined by double-digit percentages for seven of the last eight months for the industry. Yet, in 2009, a hardwoods department and "B-Van" department both reopened and now employ around 150 employees.
Winnebago Industries, Inc. is one of the largest manufacturers of mobile homes within the United States. Sold under the Winnebago, Rialta, Ultimate, Vectra, and Itasca brand names, these self-contained vehicles are aimed at the recreational and leisure markets through an extensive dealer network throughout the United States and Canada. Built with state-of-the-art computer-aided design and manufacturing systems, on highly efficient assembly lines similar to the automotive industry, the company has grown into one of the leaders in the industry. Winnebago Industries celebrated its 40th anniversary in fiscal 1998 by introducing new designs for over 75 percent of its motor homes.
Winnebago Industries, Inc. (Winnebago Industries), incorporated on February 12, 1958, is the United States manufacturer of motor homes, which are self-contained recreation vehicles (RV) used primarily in leisure travel and outdoor recreation activities. It sells motor homes through independent dealers under the Winnebago, Itasca and ERA brand names. Other products manufactured by Winnebago Industries consist primarily of original equipment manufacturing (OEM) parts, including extruded aluminum and other component products for other manufacturers and commercial vehicles. Its Forest City facilities have been designed to provide vertically integrated production line manufacturing. It also operates a cabinet products manufacturing facility in Charles City, Iowa. Its motor home bodies are made from various materials and structural components, which are laminated into rigid, lightweight panels. Body designs are developed with computer design and analysis and subjected to a variety of tests and evaluations to meet its standards and requirements. It manufactures a number of components utilized in its motor homes, with the principal exceptions being chassis, engines, generators and appliances.
Motor Homes
Winnebago Industries manufactures and sells Class A and C motor homes under the Winnebago and Itasca brand names. It manufactures Class A motor homes with gas and diesel engines. It manufactures Class C motor homes with gas and diesel engines. It Class A (gas) motor homes include Vista, Sightseer, Adventurer, Sunstar, Sunova and Suncruiser. Its Class A (diesel) motor homes include Via, Journey, Journey Express, Tour, Reyo, Meridian, Meridian V Class and Ellipse. Its Class C motor homes include Access, Access Premier, Aspect, View, View Profile, Impulse, Impulse Silver, Cambria, Navion and Navion iQ. These motor homes provide living accommodations for up to seven people and include kitchen, dining, sleeping and bath areas, and in some models, a lounge.
Optional equipment accessories include generators, home theater systems, king-size beds, and UltraLeather upholstery and a selection of interior equipment. With the purchase of any new motor home, Winnebago Industries offers a 12-month/15,000-mile warranty on the coach and, for Class A and C motor homes, a 3-year/36,000-mile structural warranty on sidewalls and floors. Its Class A and C motor homes are sold by dealers in the retail market.
Motor Home Parts and Services
Motor home parts and service activities represent revenues generated by service work it performs for retail customers at its Forest City, Iowa facility and parts it sell to its dealers. As of August 28, 2010, its parts inventory was approximately $2.2 million and is located in a 450,000-square foot warehouse.
Other Manufactured Products
Winnebago Industries manufacture aluminum extrusions, which are sold to approximately 70 customers. To a limited extent, the Company manufactures other component parts sold to outside manufacturers. It also manufactures commercial vehicles, which are motor home shells, primarily custom designed for the buyer's special needs and requirements, such as law enforcement command centers and mobile medical and dental clinics. These commercial vehicles are sold through its dealer network.
That optimism was short-lived, however. Revenues for the company plunged to $332.8 million in 1990 from $437.5 million a year earlier. Earnings continued to be in the red; this time the posted loss was $17.8 million. The effects of the Persian Gulf War--which drove up the price of oil and raised fears of an oil shortage at the gas pumps--undercut sales in the motor home division. In addition, the Cycle-Sat subsidiary continued to post operating losses. To stem losses, Winnebago began an austerity program in 1990 and increased the marketing of its Warrior and Spirit micro-mini motor home models, which offered superior fuel efficiency.
Fred Dohrmann, appointed chief operating officer of Winnebago in 1990, added the position of president to his nameplate in 1991 as the company continued to struggle amid the gathering recession. Company sales, dented by the impact of the Gulf War, continued a slide of 34 percent to $222.6 million for fiscal 1991. An earnings loss in 1991 was posted at $29.3 million, or $1.18 per share.
John K. Hanson termed the year a difficult one for the company. The manufacture of commercial vehicles was discontinued to direct more investment toward the recreational motor home division, the company's core business. Sales of motor homes in 1991, at $180.8 million, represented 81.2 percent of total company sales. In 1992 sales for the company increased to $294.9 million. The company, however, continued to lose money and posted a net loss of $10.5 million. Nonetheless, the recession had eased in 1992, and the Gulf War and its harmful trading effects had ended.
During the mid- and late 1990s, Winnebago Industries continued to struggle. Yet, by 1997, the company's management had implemented a comprehensive revitalization strategy that brought life back to the company. Most of Winnebago's non-RV holdings were sold off, and the company returned to what it did best, namely, manufacture recreational vehicles. All new 33- and 36-foot designs for the Winnebago Chieftain and Itasca Sunflyer, loaded with innovative and functional amenities such as a galley/coach slideout, a dinette/couch slideout, and a bed/wardrobe slideout where a queen-sized bed and mirrored wardrobe are moved out to reveal nearly 132 cubic feet of added living space, soon became the envy of the industry and two of the most popular RVs on the market. The company also made the commitment to install the latest technological advancements in RV manufacturing, thus resulting in the increase of its original equipment manufacturing program that brought in over $30 million in new sales during 1998. All of these measures contributed to a cash reserve of over $50 million by the end of fiscal 1998, and growing confidence within management that the company was ready to embark on a growth through acquisitions strategy, with the intention of enhancing its ability to build and market top-quality motor homes.
Although Winnebago Industries will need to work hard in order to maintain profitability, recent demographic studies indicate that the company should be confident about its future. Moreover, as long as there are people who want to travel in the comfortable and relaxing surroundings of their own motor home, Winnebago Industries will provide them with the most luxurious recreational vehicle on the market.
Principal Subsidiaries: Winnebago Acceptance Corporation; Winnebago R.V., Inc.; Winnebago Realty Corporation; Winnebago Products, Inc.
OVERALL
Beta: 2.43
Market Cap (Mil.): $359.66
Shares Outstanding (Mil.): 29.12
Annual Dividend: --
Yield (%): --
FINANCIALS
WGO.N Industry Sector
P/E (TTM): 19.99 18.05 21.66
EPS (TTM): 130.20 -- --
ROI: 10.17 4.07 1.89
ROE: 18.55 4.60 2.88
Statistics:
Public Company
Incorporated: 1958 as Modernistic Industries of Iowa
Employees: 2,800
Sales: $438 million (1997)
Stock Exchanges: New York Midwest Pacific
Ticker Symbol: WGO
SICs: 3716 Motor Homes
Name Age Since Current Position
Robert Olson 59 2011 Chairman of the Board, Chief Executive Officer
Randy Potts 52 2011 President
Sarah Nielsen 37 2005 Chief Financial Officer, Vice President
Raymond Beebe 68 1986 Vice President, General Counsel, Secretary
Roger Martin 50 2003 Vice President - Sales and Marketing
William O'Leary 61 2001 Vice President - Product Development
Daryl Krieger 47 2010 Vice President - Manufacturing
Robert Gossett 59 1998 Vice President - Administration
Donald Heidemann 37 2007 Treasurer
Brian Hrubes 59 1996 Controller
Gerald Kitch 72 2010 Lead Director
Jerry Currie 65 1996 Director
John Hanson 68 1996 Director
Joseph England 70 2001 Director
Irvin Aal 71 2004 Director
Lawrence Erickson 61 2005 Director
Robert Chiusano 59 2008 Director
Address:
605 W. Crystal Lake Road
Forest City, Iowa 50436
U.S.A.