Winnebago Industries Reports Results for Fourth Quarter and Fiscal 2005; Cash Dividend Announced

FOREST CITY, Iowa--Oct. 1, 20053, 2005--Winnebago Industries, Inc. , a leading United States motor home manufacturer, today reported net income for the fourth quarter ended August 27, 2005 of $15.4 million, compared to $19.0 million for the fourth quarter of fiscal 2004. On a diluted per share basis, the Company earned 46 cents a share for the fourth quarter of fiscal 2005, compared to 55 cents a share for the fourth quarter last year.

Revenues for the fourth quarter of fiscal 2005 were $231.5 million, compared to revenues of $283.0 million for the fourth quarter last year.

Net income for fiscal 2005 was $65.1 million, compared to $70.6 million for fiscal 2004. On a diluted per share basis, the Company earned $1.92 a share, compared to $2.03 a share for fiscal 2004.

Revenues for fiscal 2005 were $992.0 million, compared to $1.1 billion for the previous fiscal year.

"Winnebago Industries' fiscal 2005 results represent the second best year in the Company's 47-year history," said Winnebago Industries' Chairman and CEO Bruce Hertzke. "While revenues and earnings were lower than last year, I am still extremely proud of the performance of the Company."

Hertzke continued, "Results for Winnebago Industries' fourth quarter were negatively impacted by lower sales volume and a shift in product mix to lower priced motor homes, particularly Class C's, offset in part by lower incentive compensation expenses."

The Company's sales order backlog was 2,059 units at August 27, 2005 compared to the backlog of 2,541 units at August 28, 2004. "We believe the decrease in backlog at fiscal 2005 year end is due to lower consumer confidence levels, driven primarily by the volatility of fuel costs. We anticipate these factors, along with a continued shift in product mix, to continue into fiscal 2006 and as a result, have adjusted factory output to meet the current market environment," said Hertzke.

In a meeting held yesterday, Winnebago Industries' Board of Directors declared a quarterly cash dividend of nine cents a share, payable on January 9, 2006 to shareholders of record as of December 9, 2005.

During fiscal 2005, Winnebago Industries repurchased 860,321 shares of the Company's common stock for an aggregate price of approximately $27 million. The Company currently has an open authorization for the purchase of outstanding shares of Winnebago Industries' common stock for an aggregate price of up to $30 million.

Winnebago Industries will conduct a conference call in conjunction with this release at 10 a.m. ET today, Thursday, October 13, 2005. Members of the news media, investors and the general public are invited to access a live broadcast of the conference call via the Investor Relations page of the Company's website at www.winnebagoind.com, or from http://www.b2i.us/external.asp?b=1255&id=189&from=wc&L=e or www.vcall.com. The event will be archived and available for replay for the next 90 days.

About Winnebago Industries

Winnebago Industries, Inc. is the leading United States manufacturer of motor homes, self-contained recreation vehicles used primarily in leisure travel and outdoor recreation activities. The Company builds quality motor homes under the Winnebago and Itasca brand names with state-of-the-art computer-aided design and manufacturing systems on automotive-styled assembly lines. The Company's common stock is listed on the New York, Chicago and Pacific Stock Exchanges and traded under the symbol WGO. Options for the Company's common stock are traded on the Chicago Board Options Exchange. For access to Winnebago Industries investor relations material, to add your name to an automatic email list for Company news releases or for information on a dollar-based stock investment service for the Company's stock, visit, http://www.winnebagoind.com/html/company/investorRelations.html

                      Winnebago Industries, Inc.
             Unaudited Consolidated Statements of Income
               (In thousands, except per share amounts)
                            Quarter Ended         Fiscal Year Ended
                        8/27/2005   8/28/2004   8/27/2005   8/28/2004
                        ----------  ----------  ----------  ----------
Net revenues           $  231,461  $  283,002  $  991,975  $1,114,154
Cost of goods sold        199,002     241,346     854,997     951,985
                        ----------  ----------  ----------  ----------
   Gross profit            32,459      41,656     136,978     162,169
                        ----------  ----------  ----------  ----------
Operating expenses
   Selling                  6,516       6,986      19,936      20,764
   General and
    administrative          2,895       5,643      18,787      30,607
                        ----------  ----------  ----------  ----------
      Total operating
       expenses             9,411      12,629      38,723      51,371
                        ----------  ----------  ----------  ----------
Operating income           23,048      29,027      98,255     110,798
Financial income              741         484       2,635       1,436
                        ----------  ----------  ----------  ----------
Pre-tax income             23,789      29,511     100,890     112,234
Provision for taxes         8,411      10,521      35,817      41,593
                        ----------  ----------  ----------  ----------
Net income             $   15,378  $   18,990  $   65,073  $   70,641
                        ==========  ==========  ==========  ==========
Income per share(a)
     Basic             $     0.47  $     0.56  $     1.95  $     2.06
                        ==========  ==========  ==========  ==========
     Diluted           $     0.46  $     0.55  $     1.92  $     2.03
                        ==========  ==========  ==========  ==========
Number of shares used
 in per share
 calculations(a)
     Basic                 32,946      33,670      33,382      34,214
                        ==========  ==========  ==========  ==========
     Diluted               33,342      34,244      33,812      34,789
                        ==========  ==========  ==========  ==========

(a) Adjusted for 2-for-1 stock split on March 5, 2004



                      Winnebago Industries, Inc.
           Unaudited Consolidated Condensed Balance Sheets
                            (In thousands)
                                           Aug. 27, 2005 Aug. 28, 2004
                                           ------------- -------------
ASSETS
Current assets
   Cash and cash equivalents              $      19,484 $      24,445
   Short-term investments                        93,100        51,100
   Receivables                                   40,910        46,112
   Inventories                                  120,655       130,733
   Other                                         13,943        17,679
                                           ------------- -------------
      Total current assets                      288,092       270,069
Property and equipment, net                      63,853        63,995
Deferred income taxes                            24,997        25,166
Investment in life insurance                     22,066        22,863
Other assets                                     13,952        12,463
                                           ------------- -------------
      Total assets                        $     412,960 $     394,556
                                           ============= =============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
   Accounts payable                       $      37,229 $      46,659
   Income taxes payable                           4,458         4,334
   Accrued expenses                              48,000        54,285
                                           ------------- -------------
      Total current liabilities                  89,687       105,278
Post retirement health care and
  deferred compensation benefits                 87,386        87,403
Stockholders' equity                            235,887       201,875
                                           ------------- -------------
      Total liabilities and stockholders'
       equity                             $     412,960 $     394,556
                                           ============= =============

Certain prior period information has been reclassified to conform to 
the current year presentation.



                      Winnebago Industries, Inc.
       Unaudited Condensed Consolidated Statement of Cash Flows
                        (Dollars in thousands)
                                                  Fiscal Year Ended
                                                8/27/2005   8/28/2004
                                               -----------  ----------
Cash flows from operating activities:
   Net income                                 $    65,073  $   70,641
Adjustments to reconcile net income to net
 cash provided by operating activities:
   Depreciation and amortization                    9,999       9,628
   Tax benefit of stock options                     1,177       2,573
   Other                                            1,043         657
Change in assets and liabilities:
   Decrease (increase) in receivables and
    other assets                                    5,522     (16,764)
   Decrease (increase) in inventories              10,078     (16,451)
   Decrease (increase) in deferred income
    taxes                                           3,424      (7,615)
   (Decrease) increase in accounts
    payable/accrued expenses                      (15,715)      6,195
   Increase in income taxes payable                   124       5,759
   (Decrease) increase in postretirement
    benefits                                       (1,081)     12,061
                                               -----------  ----------
Net cash provided by operating activities          79,644      66,684
                                               -----------  ----------

Cash flows (used in) provided by investing
 activities:
   Purchases of property and equipment            (10,091)    (10,588)
   Purchases of short-term investments           (255,023)   (145,382)
   Proceeds from the sale of short-term
    investments                                   213,023     184,391
   Other                                             (276)       (318)
                                               -----------  ----------
Net cash (used in) provided by investing
 activities                                       (52,367)     28,103
                                               -----------  ----------

Cash flows used in financing activities
   and capital transactions:
   Payments for purchase of common stock          (26,796)    (77,668)
   Payment of cash dividends                       (9,985)     (6,899)
   Proceeds from issuance of common and
    treasury stock                                  4,543       4,953
                                               -----------  ----------
Net cash used in financing activities and
 capital transactions                             (32,238)    (79,614)
                                               -----------  ----------

Net (decrease) increase in cash and cash
 equivalents                                       (4,961)     15,173

Cash and cash equivalents-beginning of period      24,445       9,272
                                               -----------  ----------

Cash and cash equivalents-end of period       $    19,484  $   24,445
                                               ===========  ==========

Certain prior period information has been reclassified to conform to 
the current year presentation.



                      Winnebago Industries, Inc.
                   Unaudited Motor Home Deliveries

                               Quarter Ended       Fiscal Year Ended
                           8/27/2005  8/28/2004  8/27/2005  8/28/2004
                           ---------- ---------- ---------- ----------
Unit deliveries
  Class A gas                  1,026      1,289      4,527      5,277
  Class A diesel                 440        686      2,147      2,831
  Class C                      1,085      1,113      3,963      4,408
                           ---------- ---------- ---------- ----------
    Total deliveries           2,551      3,088     10,637     12,516



                      Winnebago Industries, Inc.
                Unaudited Backlog and Dealer Inventory
                               (Units)
                                                         As of
                                                 8/27/2005  8/28/2004
                                                 ---------- ----------
Sales order backlog
  Class A gas                                          637      1,187
  Class A diesel                                       336        614
  Class C                                            1,086        740
                                                 ---------- ----------
    Total backlog(b)                                 2,059      2,541
Total approximate revenue dollars
(in thousands)                                    $170,000   $220,000

Dealer inventory                                     4,794      4,978


(b) The Company includes in its backlog all accepted orders from
dealers shippable within the next six months. Orders in backlog can be
cancelled or postponed at the option of the purchaser at any time
without penalty and, therefore, backlog may not necessarily be an
accurate measure of future sales.