(Radio Iowa) – Winnebago Industries reports third quarter profits were down compared to last year as the company leader says they adjust to the uncertain economic environment. The company reported net income for the quarter ending on May 31st at nearly 18 million dollars compared 29 million dollars for the same quarter last year. C-E-O Michael Happe says they are continuing the transformation of the company’s struggling signature motor-home line.

“We have taken decisive steps to lower field inventory, improve working capital in the future, align our production schedule to market demand, reduce discretionary expenses, and accelerate stronger product value for our customers,” Happe says. Winnebago announced the layoffs in May of about 200 hourly employees at their Iowa facilities in Forest City, Lake Mills, Charles City and Waverly as part of the effort to cut inventory. Happe says they decided to make the cuts in favor of price discounts on the motor-homes.

“One of the most important decisions we made during the fiscal third quarter here recently was to significantly reduce production of units that we otherwise would likely have had to push to the field with higher sales allowances or discounts than we were comfortable with<” he says. “That decision allowed us then to make some adjustments from a production discipline standpoint and go after some other short-term cost adjustments in the business.” Happe says things have been tough for the entire industry, and that doesn’t look to change this fiscal year.

“All of us in the R-V industry had been hoping for a stronger 2025 year and that there would be an inflection point from a recovery standpoint at some point during this year,” Happe says. Happe says they are optimistic the changes they have made will show some improvement after this fiscal year ends in October and they introduce some new products. He was asked if they plan to move away from their motor-home line given the issues it has faced.

“I won’t comment on our intentions strategically with this line other than we are incredibly committed to the our flagship brand of Winnebago, both in the motor-home and towable space,” he says. “We intend to compete vigorously and profitably in the future with the Winnebago brand of motor homes. But we are evaluating many strategic options as to what that business plan looks like.”

The company is now headquartered in Minnesota and also makes boats along with the R-V’s and towable campers.