Winnebago CEO: RV industry outlook worsening

By James B. Kelleher

FOREST CITY, Iowa (Reuters) - The head of Winnebago Industries Inc (WGO.N: Quote, Profile, Research, Stock Buzz) told Reuters the economic challenges facing motor-home makers has only worsened in the month since it reported that quarterly earnings tumbled 73 percent.

In an interview late Sunday at an annual get-together of hundreds of customers near the company's headquarters, Bob Olson, Winnebago's new chief executive, acknowledged, "We've got a lot of things going against us." He said the current slump was different from previous ones because of its complexity.

In the past, he said, "you had only one thing to worry about. This one's different ... There's about four, five, six different variables, not just one focus point.

"You have escalating food prices. You can't turn on the TV or radio without hearing it's another record-setting day for fuel. And I think that's probably one of the biggest concerns right now, not only of RVers but everybody. They don't know where this is going to settle in."

Olson also cited declining home prices, interest rates and the uncertainty growing out of the wide-open presidential race.

Asked if the headwinds were abating or getting worse a month into its fiscal fourth quarter, Olson said: "I hate to say this, but they're probably even worse than they were at the end of the third quarter."

Winnebago shares dropped 58 cents, or 5 percent, to $11.49 Monday on the New York Stock Exchange. The stock has traded in a 52-week range of $9.09 to $32.35.

He said the decision last week by rival Monaco Coach Corp (MNC.N: Quote, Profile, Research, Stock Buzz) to close three plants and lay off up to one-third of its work force illustrated "in spades what this industry is going through right now."  Continued...