Winnebago to move diesel motorhome manufacturing back to Iowa
Winnebago Industries Inc. announced Monday plans to move the manufacturing of Class A diesel motorhomes to Forest City, Iowa from Junction City, Oregon, a move that will lead to net losses of about 45 jobs. The recreational vehicle maker said the transition process will begin immediately, with a negative impact to earnings of 2 cents a share expected in both the third and fourth quarters before a positive impact expected to begin in 2020. The Oregon facility, which currently employees about 250 people, will employ about 30 people after the move is completed, while the move is expected to boost employment in Iowa by 175 positions. "While the strategic purpose of the company's decision to move diesel manufacturing to Junction City years ago was well intended as a means to acquire additional motorhome assembly capacity and tap into an experienced RV workforce in the Northwest, we have not achieved our targeted operating efficiency and profitability goals," said Brian Hazelton, general manager of Winnebago's motorhome busineess. "This difficult decision to relocate diesel manufacturing back to Forest City, Iowa and centralize our diesel business value chain geographically is necessary." The stock, which slumped 3.1% in morning trade, has plunged 35.4% over the past 12 months, while the S&P 500 has eased 2.0%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.