US motor-homes manufacturer Winnebago Industries Inc (NYSE:WGO) reported a jump in first-quarter profits and revenues, boosted by growth in its towable recreational vehicles business.
In the quarter to November 25, gross profit surged 117.6% to US$62.8mln from US$28.9mln the same period a year ago.
READ: Winnebago launches US$70mln stock buyback after Q4 results top Wall Street forecasts
Revenue gained 83.5% to US$450mln from US$245.3mln as growth in the towables business offset lower revenues from the motorised vehicle unit.
The acquisition of Grand Design RV boosted the towables division while the motorised segment was affected by investments related to start-up of new lines and increased operational and direct materials costs.
Shares rose 1.48% to US$57.40 each in US pre-market trading.
“Our results reflect a transformed portfolio and focused dual-brand strategy that positions us to drive increasing market share and profitability, balancing our motorised business with a fast-growing towable segment,” said chief executive Michael Happe.
“Going forward, our focus remains on improving the operations of our business to drive long-term, sustainable profitability.”
US shipments of RVs are expected to exceed 500,000 units in 2017 followed by a ninth consecutive year of growth in 2018, he added.