Winnebago Industries’ purchase of an Indiana company last fall is continuing to pay off for the Forest City-based manufacturer of recreational vehicles. Third quarter earnings are way up from a year ago.
Revenues for Winnebago are up 75 percent from a year ago and stand at around $476 million for the third quarter. Much of that increase is coming from Grand Design Recreational Vehicles, a maker of tow-along and fifth-wheel trailers, which Winnebago bought in late 2016. President and CEO Michael Happe says the company has also been able to get rid of some of its debt since the purchase.
“Since closing the acquisition Nov. 8 of 2016, just over seven months ago, we’ve now paid down $69.4 million in debt.”
Happe says Grand Design has quickly become a leader in the recreational vehicle industry.
“After just over 4 ½ years, Grand Design has been able to capture nearly 11 percent of the fifth wheel market share in the industry,” he says.
Grand Design added $197 million to Winnebago’s bottom line in the third quarter. Happe says he will announce soon Winnebago’s plans to expand its production capacity. Revenue in the motorized division was down two percent for the quarter.