Winnebago Industries, Inc. F4Q08 (Qtr End 08/30/08) Earnings Call Transcript

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2008-10-16 13:57:09.0

Tags: Winnebago Industries Inc., Inventory, Call Transcript, Earnings, Sales Strategy, Sales Force Management, Sales, Seeking Alpha, Winnebago Industries Inc., Inventory, Call Transcript, Earnings, Sales Strategy, Sales Force Management, Sales, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from the line of [Scott Stember] - Sidoti. Please proceed.

[Scott Stember] -- Sidoti

Sarah, would you happen to have the [ASC’s] by product line for this year and last year?

Sarah N. Nielsen.

Yes, I do, for the entire quarter, our average selling price of $81,377 and if you break that out, Class C had an ASP of $65,146 versus last year of $63,139. If you look at the Class B products, we were at $69,359 and from an A standpoint total A’s were $103,362. Gas was $84,362 and Diesel was $159,057.

Comparatively last year we had a Class A price for the quarter $88,086 and diesel was $172,590 and total Class A last year for the quarter was $109, 131.

[Scott Stember] -- Sidoti

And can you maybe just touch on the cost cutting and the streamlining that you have been going through the last quarter or so. I mean obviously nobody knows where the markets going to head for the next couple of quarters, but assuming we’re entering a new paradigm where sales levels will be much lower going forward, do you think that the moves that you made so far are sufficient enough going forward?

Robert J. Olson

[Scott], this is Bob. We continue to monitor this thing everyday and I don't have a great answer for you, but I can tell you what we've done from past experience. Starting in the fiscal 2008 time period that we look at what the market indicators are, and I think Sarah probably outlined it best and when you look at the fourth quarter, how significantly that has paled off each month. And we've gone through and we reduced a lot of our cost expense and we think we're there and then all of sudden it gets worse so we have to go do it again.

It's all really going to hinge upon where does this thing really finally level out, and a lot of that's going to hinge as we pointed out in our prepared statement, that dealer inventories, I think that's going to play a huge impact on where this thing finally does level off at. Because with the dealer inventories, where they are at today compared to where they were, even since the first of the year, there's been tremendous reduction of those inventories.

And what we can't answer yet is at what level are the dealers going to feel comfortable with the inventory levels that they finally achieve. Once we get there, I'll probably be able to answer your question a little bit better, but I think this is going to be a moving target and I think as the dealers finally get to where they feel comfortable with the inventory level, we'll feel comfortable that we made enough reductions in our overhead expenses.

 

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