Winnebago Industries (NYSE:WGO) shares have dropped by 2.2 percent so far today after the company reported a 73 percent drop in first quarter profit due to lower deliveries of recreational vehicles and increased production costs.
For the three months which ended on November 26th the company posted a net income of $1 million, or 4 cents per share, down from last years same quarter net income of $3.8 million, or 13 cents per share. Analysts on average had expected earnings of 6 cents per share.
Revenue seen an increase of 6.6 percent to $131.8 million from $123.7 million as people bought larger and more expensive RV’s.
The company said that its lower sales of RV’s means it has to shorten the work weeks at its plants which has reduced production efficiency and increased costs.
News of the lower than expected earnings during the first quarter sent shares lower on Thursday. Winnebago currently trades at $6.80.
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