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Winnebago reports strong profits

FOREST CITY, IOWA, June 14, 2012 – Winnebago Industries, Inc. (NYSE:WGO), a leading United States (U.S.) recreation vehicle (RV) manufacturers, today reported financial results for the Company’s third quarter of Fiscal 2012 and first nine months of Fiscal 2012.

Revenues for the third quarter of Fiscal 2012 ended May 26, 2012 were $155.7 million, an increase of 14.9 percent, versus $135.6 million for the third quarter of Fiscal 2011.  Included within consolidated revenues was $16.4 million associated with towable products, compared to $7.2 million for the third quarter of Fiscal 2011.  The Company reported an operating profit of $3.5 million for the quarter versus $538,000 for the third quarter of Fiscal 2011.  Net income for the third quarter was $3.9 million versus $1.2 million for the third quarter of Fiscal 2011.  On a diluted per share basis, the Company had net income of $0.13 for the third quarter of Fiscal 2012 versus $0.04 for the third quarter of Fiscal 2011.

Revenues were higher in the quarter as compared to the prior year primarily due to an increase in wholesale deliveries of towable products and the increase in average selling price for all RV products due to the mix of higher priced products delivered.  The third quarter of Fiscal 2012 gross margin was positively impacted by better fixed cost absorption due to higher production levels as compared to the prior period.

Revenues for the first nine months of Fiscal 2012 were $419.1 million, an increase of 14.6 percent, compared to $365.9 million for the first nine months of Fiscal 2011. The Company reported an operating profit of $3.0 million for the first nine months of Fiscal 2012, compared to $9.5 million for the same period of Fiscal 2011.  Net income for the first nine months of Fiscal 2012 was $4.1 million, or $0.14 per diluted share, versus $8.3 million, or $0.28 per diluted share, for the first nine months of the last fiscal year.

Revenues were higher for the first nine months as compared to the prior period for the same reasons as during the third quarter, with increased towable deliveries and increased average selling prices for all RV products due to the mix of higher priced products delivered.  Operating profit for the first nine months was lower as compared to the prior period most notably due to increased pricing and inflationary pressures in Fiscal 2012 and the fact that Fiscal 2011 results included a $3.5 million pre-tax benefit from the results of an annual physical inventory of work-in-process, due to lower actual inventory scrap and production loss.

Our business was sequentially much stronger during the third fiscal quarter and as a result, our margins have improved,” said Winnebago Industries’ Chairman, CEO and President Randy Potts.  “Notably, towables achieved their first full quarter of operating profitability in the third quarter.  Our sales order backlog for motorized products was strong going into our Dealer Days event held in May in Las Vegas.  This event resulted in even more orders, particularly for our towable products, due to the positive reception to our new product offerings.  Our RV inventory on dealers’ lots is fresh but at a conservative level, which combined with our higher order position leads us to be optimistic about the remainder of the fiscal year.”

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