With recreational vehicle sales plummeting, Forest City-based Winnebago Industries Inc. reported a net loss of $12.7 million, or 44 cents per share, for its fiscal fourth quarter ended Aug. 30, a suspension of its cash dividend and layoffs that have reduced its work force by 42 percent from the year-ago period. The loss included an operating loss of $4.7 million related to idling its Charles City manufacturing facility and $750,000 in severance packages due to workforce reductions.

In the fiscal fourth quarter of 2007, Winnebago had a net income of $14.8 million, or 49 cents per share. Revenues in the 2008 fourth quarter fell 64.1 percent to $85.3 million, compared with $237.7 million a year earlier.

The company was hit hard by a sharp decline in motor home sales in the quarter and a reduction in the average motor home selling price due to incentives and a higher mix of lower-priced products. Winnebago’s 64 percent decline in sales mirrors the industry trend, which experienced a downturn in shipments of 54 percent in June, 56 percent in July and 65 percent in August, according to the Recreation Vehicle Industry Association.

“As difficult as conditions have been all fiscal year, the company’s fourth quarter was even more challenging,” said Winnebago Chairman, President and CEO Bob Olson, in a release. “While fuel prices stabilized somewhat during the quarter, the U.S. economy continued to falter, with the availability of credit and rising interest rates becoming major concerns for both our retail customers and our dealers.”

In order to cut costs, the company laid off 600 full-time hourly and salaried employees during the quarter and since the quarter ended has cut another 300 jobs, bringing its total to 1,930 job cuts, a 42 percent decline in its work force, since Aug. 25, 2007.

Winnebago also said it will stop paying a quarterly cash dividend to shareholders in order to conserve capital and maintain liquidity. It paid a quarterly cash dividend of 12 cents a share on Oct. 6 to shareholders of record on Sept. 5.