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January 24, 2008
DES MOINES, IA - Winnebago Industries Inc., one of the nation's leading recreational vehicle manufacturers, is expected to lay off workers as high fuel prices and consumer worries about the economy continue to dampen sales, a company official said Thursday.
"Wholesale and retail markets for motor homes industrywide have been depressed because of the economic factors going on right now," spokeswoman Sheila Davis said. "Two major economic factors are interest rates and consumer confidence and both of them have been negative for us for awhile."
Davis said she could not release the exact number of layoffs or a time frame, but said they are expected "fairly soon."
The Forest City-based company employs 3,300 workers.
Winnebago operates plants in Forest City, Charles City and Hampton.
The layoffs are expected at Forest City, Davis said. She said she hasn't heard any discussion of layoffs at the other locations.
Winnebago shares were trading down 4.2 percent, or 89 cents, at $20.51.
Winnebago's second fiscal quarter, which includes the months of December, January and February is typically the slowest in the cyclical business.
Chief Executive Bruce Hertzke said in December that the industry continued to see softness in motor home sales and the second quarter is likely to reflect that.
President Bob Olson said then that consumer confidence remained weak and the company expected that trend to continue in coming months.
Just over 390,000 RVs were shipped in 2006, a 1.6 percent increase, the fifth consecutive year shipments had increased. That trend ended in 2007 when fewer RVs were shipped to dealers. Through November 2007, 331,000 RVs were shipped from manufacturers, according to the Recreation Vehicle Industry Association.
A 4.8 percent decline in shipments is anticipated this year, according to the latest industry forecast conducted by Dr. Richard Curtin, director of consumer surveys at the University of Michigan, the RVIA said.
RV statistics include motor homes, travel trailers, truck campers and folding camping trailers.
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