Winnebago Industries Inc. announced a net loss of $9.6 million, or 33 cents per share, for its first fiscal quarter ended Nov. 29, compared with net income of $10 million, or 34 cents per share, in the year-ago period. The downturn was driven by a decrease in demand, increases in retailer incentives and a less favorable mix of products sold, the company said.

The Forest City-based RV manufacturer’s revenues declined 67.7 percent to $69.4 million during the 13-week quarter, compared with $215.1 million in the 14-week period ended Dec. 1, 2007. It had an operating loss of $16.9 million, compared with operating income of $13.6 million in the year-ago period.

“Current market conditions remain extremely challenging due to the overall decline in the general economy and a declining housing market and stock market, which continue to erode the American consumer’s sense of wealth,” said Winnebago Chairman, President and CEO Bob Olson in a release. “Additionally, the availability and terms of financing at both the wholesale and retail levels are a significant concern.”

The company benefited from a $27.3 million reduction in inventories, which contributed to a 61.1 percent increase in cash and cash equivalents by the end of the quarter. As of Nov. 29, it had reduced its inventory by 34.3 percent compared with its high of 4,978 motor homes at the end of fiscal 2004.

It also introduced several new products at the National RV Trade Show earlier this month, including the company’s first hybrid motor home.

However, the company expects market conditions to remain weak. Statistical Surveys, the retail reporting service for the RV industry, said retail motor home sales declined 39.5 percent for the calendar year-to-date through October, compared with the year-ago period. Winnebago remains a leader in Class A and Class C motor home sales with an 18.6 percent market share.