(Radio Iowa) – Winnebago Industries is laying off 33 workers from its Forest City plant next month. The company disclosed the layoffs on a state website where companies report layoffs. About a third of Winnebago’s 61-hundred workers are employed at facilities in northern Iowa. The R-V and boat manufacturer announced on Wednesday it had revenue of over three BILLION dollars in its just concluded fiscal year, but profits were down 26 percent compared to the previous 12 months. Winnebago president and C-E-O Michael Happe says that reflects sluggish retail demand and operating inefficiencies within the company.

“While the retail environment remains challenging in the short term, we anticipate gradual market improvement over the next 12-15 months,” Happe says. Happe says motorhome dealers are in de-stocking mode and the inventory of Winnebago products was down four-and-a-half percent in its last quarter. “Which underscores our focus on continuing to aggressively manage production amidst what remains a challenging macroeconomic environment.” In additional to the layoffs at Forest City facilities on November 22nd, Winnebago closed a plant in Charles City on September 1st and moved production of camper vans to its Lake Mills facility.

“We have made substantive leadership changes at Winnebago Motorhome and Winnebago Towables to remedy the operational and financial challenges that have affected the performance of those businesses in recent quarters,” Happe says. The company’s operating expenses increased during its last fiscal year, with net income of 13 MILLION dollars. Happe says despite the weak retail market, the company is well-positioned. “As we look to the future, I am confident in our company’s strong positioning and long term growth potential,” Happe says. “…Our strong balance sheet and healthy free cash flows are not just numbers on a page. They represent opportunity. We have ample dry powder to invest smartly in growth initiatives, while simultaneously returning capital to our valued shareholders.”

Winnebago has seen growth in its marine division. In 2018, the company acquired powerboat maker Criss Craft and three years ago Winnebago bought Barletta, which manufactures pontoon boats.