Earnings Preview: Competition Thins For Winnebago

By DAN STRUMPF

NEW YORK (AP) — Winnebago Industries Inc., the top-selling motor home maker, is scheduled to report fiscal second-quarter results on Thursday. The following is a summary of key developments and analyst opinion related to the period.

OVERVIEW: Things have gone from bad to worse for the RV industry in recent months. Facing collapsing sales and mounting debts, two of the industry's top names, Monaco Coach Corp. and Fleetwood Industries Inc., filed for Chapter 11 bankruptcy protection within days of each other earlier this month.

RV sales have been in a state of steady decline recently, as the souring economy and deadlocked credit markets drive consumers away from showrooms. While Winnebago has fared better than some of its competitors, the Forest City, Iowa, company has been forced to slash costs to cope.

Last month, Winnebago announced a round of pay cuts for its salaried work force. Chief Executive Robert Olson took a 20 percent pay cut, while executive officers faced 10 percent pay reductions and remaining white-collar workers took 3 percent cuts.

BY THE NUMBERS: Wall Street analysts expect Winnebago to post a second-quarter loss of 30 cents per share, on average, for the quarter ended Feb. 28, according to Thomson Reuters.