Top Operating Officers at Winnebago Resign
Winnebago Industries’ two top operating officers have resigned from the recreational vehicle manufacturer, replaced by a seven-member management council.
Stepping aside were Gerald W. Gilbert, president and chief executive, and Richard Berreth, executive vice president.
The company, which issued a statement, did not elaborate on why the two top officers had quit.
Berreth, 52, implied that company directors were not satisfied with the firm’s growth in recent months, although he declined to be specific. He said he was disappointed with having to resign but that he had only good things to say about the company.
“From my standpoint, it’s an excellent company with an excellent product line and a good group of people. I would prefer to let the company speak for itself (on the shake-up). I’m certainly disappointed in not being with the team, but I certainly wish them the best of luck,” he said in a telephone interview from his home.
“I’m going to take 30 days and do a little fishing, a little hunting and decide what I’m going to do when I grow up. I want to make it clear I’m not throwing mud at the company,” he said.
Attempts to reach Gilbert at his home were unsuccessful.
Berreth said he had been with Winnebago, which has headquarters in Forest City, Iowa, for 26 months.
The firm’s financial slide apparently began with the stock market crash a year ago, when Winnebago lost about $8.6 million. Because of those losses, the company posted an overall $1.9-million loss in the fiscal quarter ending Nov. 28, 1987, in contrast with a profit of $2.8 million the year earlier.
“Obviously, we took quite a hit,” Gilbert said at the time. “But over a five-year period of time or so, we made awfully good money in the market.” The company said its investments had earned an average of 18.5% before taxes.
Profit continued to fall early this year. In a second-quarter statement, the motor-home maker said profit dropped to $1.3 million from $6.3 million in the previous second quarter ending Feb. 27. Per-share earnings dropped to 5 cents, compared to 25 cents a year earlier, and sales dropped to $94 million from $97 million.
At the time, industry analyst Frank Rolfes said profit was weakened partly because Winnebago underpriced its new Super Chief models to gain a market share.
“It’s very successful saleswise, but they’re not making any money on it,” he said.
For the first six months of the company’s fiscal year, the firm lost $680,000, or 3 cents a share, in contrast with a profit of $9.1 million the previous year.
Directing the new management team will be Bryan A. Hayes, vice president of sales and marketing. Other members include Jerome V. Clouse, vice president and treasurer; Edwin Barker, vice president and controller; Sharon L. Hansen, director of administration; Richard B. Carlson, vice president of engineering; Raymond M. Beebe, vice president and general counsel, and Frank Rotta, director of public relations.
