June 26, 2014 / 12:35 PM / 4 years ago

UPDATE 1-Strong motorhome demand drives Winnebago's profit

* Third-quarter revenue rises about 14 pct

* Earnings jump 49 pct to $11.4 mln

* Motorhome deliveries rise 18 pct to 2,331

* Shares rise 5 pct before the bell (Adds CEO comment, details, shares)

June 26 (Reuters) - Winnebago Industries Inc, the largest U.S. motorhome maker, reported its strongest quarterly revenue since 2005 as Americans spend more on big-ticket items in an improving economy.

Winnebago, which sells motorhomes under the Winnebago, Itasca and Era brands, reported an 18 percent jump in deliveries in the third quarter ended May 31.

Growth in the quarter was driven by higher rental sales and an increase in retail consumer demand, Chief Executive Randy Potts said in a statement on Thursday. (bit.ly/UM1jnP)

The company has launched a number of lower-priced recreational vehicles to attract families with younger children. As a result, its average selling price fell 4.1 percent in the quarter.

Winnebago's net income jumped 49 percent to $11.4 million, or 42 cents per share. (bit.ly/UM1jnP)

Revenue rose 13.5 percent to $247.7 million.

Earlier this month, rival Thor Industries Inc reported a 26 percent jump in third-quarter profit as sales rebounded after a severe winter.

Forest City, Iowa-based Winnebago’s shares were up 4.8 percent at $24.95 in light trading before the bell. The stock has gained about 6 percent so far this year, compared with a 13 percent fall in the S&P 500 index. (Reporting by Sagarika Jaisinghani and Abinaya Vijayaraghavan in Bangalore; Editing by Saumyadeb Chakrabarty)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below