The New Winnebago Looks Lean and Mean

In the year since the death of founder John Hanson, Winnebago Industries Inc. has trimmed non-core operations and is looking for new opportunities.

“We’re really in somewhat of a transition period without him,” said Fred Dohrmann, the Winnebago chief executive who added the title of chairman after Hanson died last June at 83.

“He was quite a coach. I miss him immensely,” Dohrmann said.

Dohrmann, 65, had been running the nation’s No. 2 motor-home maker since before Hanson’s death and guided the company’s turnaround after an industrywide slump in the late 1980s and early 1990s.

Although sales are up--Winnebago motor home sales rose from 6,586 vehicles in 1992 to 9,860 in 1995 and 9,607 in 1996--Winnebago lost $3.7 million in its latest quarter. The loss was due to a $5-million write-off on Winnebago’s struggling European operations. Revenue through the first half of its fiscal year is flat.

For the year ended Aug. 31, the company earned $12.4 million, down from $27.76 million a year earlier. Sales were $484.8 million, up from $460.1 million for the previous fiscal year.

But Dohrmann said Winnebego is financially very strong.

“We have everything paid for,” Winnebago President Bruce Hertzke agreed. “It gives us an opportunity to look for opportunities for the future.”

In the last year, under Dohrmann’s leadership, Winnebago sold its Cycle-Sat communications business for about $57 million and curtailed European operations.

“We’re definitely going to operate lean and mean,” he said.

Guy Nielsen, a Nutmeg Securities analyst who follows Winnebago, said the company is keeping its options open.

“They’re not having a very good year,” Nielsen said. “Everything is hinging on what they bring out in new products.”

Nielsen said Winnebago could buy a motor home component maker. He said it now appears unlikely that the company will expand into travel trailers. A stock repurchase is also possible, Nielsen said.