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FOREST CITY, Iowa, Dec 18 (Reuters) - Winnebago Industries Inc. reported higher quarterly earnings on Wednesday as low interest rates boosted demand for its signature motor homes, but a declining order backlog sent its shares tumbling more than 8 percent.
The No. 1 seller of motor homes in North America said it reduced its backlog of orders in the latest quarter after running nine months of overtime at its factories to meet strong demand for its recreational vehicles.
Winnebago, based in Forest City, Iowa, said dealers are replenishing inventories after some were caught without enough products to meet consumer demand last year.
"A lower backlog is good for the company because it helps Winnebago meet demand from its customers in a timely fashion," said Craig Kennison, analyst at Robert W. Baird & Co., which has no investment banking relationship with Winnebago.
But investors are concerned about a falling order backlog because it creates uncertainty about the company's growth going forward, said the analyst, who rates the stock "neutral" and owns no shares.
Winnebago reported net income of $16.3 million, or 85 cents a share, for the first quarter ended Nov. 30, compared with $10.7 million, or 51 cents, a year earlier.
Wall Street expected earnings of 68 cents a share, according to a survey of four analysts by Thomson First Call.
Revenue rose 31.7 percent to $234.1 million from $177.8 million a year ago.
Winnebago said its combined backlog of Class A and C motor homes was 1,950 on Nov. 30, down from the 3,248 backlog reported at the end of the previous quarter.
The company said it is shipping its motor homes to dealers within six to eight weeks of receiving an order, about half the time it took at the end of fiscal 2002.
Dealer inventories on Nov. 30 were 4,602 units, up from 4,000 in the previous quarter.
Shares of Winnebago fell $3.75, or 8.21 percent, to $41.92 early Wednesday on the New York Stock Exchange. The stock is up about 16 percent for the year so far.