Motor home manufacturer Winnebago Industries Inc. reported today that revenues for its second quarter, which ended March 1, fell 17.5 percent to $164.2 million from $199 million in the year-ago period. Net income was $2.5 million, down from $7.5 million a year ago.

A drop in motor home sales as consumers cut back on spending in a tough economic climate caused the company to reduce its production levels and cut its work force by 9 percent, or 300 people, in the quarter. Winnebago recorded one-time severance-related costs of approximately $500,000 in the quarter.

“Winnebago Industries remained profitable during our seasonally slowest quarter, despite extremely difficult market conditions,” said company Chairman and CEO Bruce Hertzke, in a press release. “Revenue and net income were negatively impacted by fewer motor home deliveries, reduced plant efficiencies due to fewer production days, a switch in mix to more Class C motor homes delivered and increased promotional programs, while the company benefited from an increase in the average selling price for our products in all product categories.”

The company believes the Federal Reserve’s interest rate cuts could help boost sales in the future. Winnebago also introduced its first ERA Class B motor home and began production near the end of the second quarter; about 50 dealers have signed agreements to carry the new product.