Wednesday, August 29, 2007
WHAT DID YOU EXPECT? THE HOUSING MARKET IS DOWN!
NEW YORK (AP) -- Shares of recreational vehicle makers fell Tuesday after wholesale sales results for July showed a decline from a year ago, but better results than in recent months.
According to Avondale Partners analyst Kathryn I. Thompson, total RV shipments were off 8.5 percent for the month, the smallest decline since September.Shipments represent wholesale sales to dealers.
Motorhome shipments fell 10 percent from July 2006, reversing a gain in June. July was the twelfth consecutive month for declines in towables, but Thomson noted shipments were down 8.3 percent, the first month since September that the decline was below double digits.
"We continue to believe that dealer inventory levels are reaching reasonable levels, and the continued decline in wholesale shipments on a year-over-year basis reduces the inventory further," she wrote in a note to clients, adding that retail sales have outpaced shipments for the past 10 months.
"However, this month leaves us with mixed feelings about the industry," Thompson said. "While we are encouraged by the softening decline in towable shipments, a decline in motorhome shipments is somewhat disappointing (but not surprising given the current consumer environment)."
Separately, Coachmen Industries late Monday suspended its dividend program, news which hit the Elkhart, Ind., company's stock particularly hard in Tuesday.
Here's how recreational vehicle makers fared on Tuesday:
Winnebago Industries Inc., down 86 cents, or 3.2 percent, to close at $26.36.
Thor Industries Inc., down $1.25, or 2.9 percent, to $41.45.
Drew Industries Inc., down $2.19, or 5.4 percent, to $38.06.
Fleetwood Enterprises Inc., down 26 cents to $8.84.
Monaco Coach Group, down 48 cents, or 3.5 percent, to $13.15.
Coachmen Industries, down 62 cents, or 8.3 percent, to $6.86.
According to Avondale Partners analyst Kathryn I. Thompson, total RV shipments were off 8.5 percent for the month, the smallest decline since September.Shipments represent wholesale sales to dealers.
Motorhome shipments fell 10 percent from July 2006, reversing a gain in June. July was the twelfth consecutive month for declines in towables, but Thomson noted shipments were down 8.3 percent, the first month since September that the decline was below double digits.
"We continue to believe that dealer inventory levels are reaching reasonable levels, and the continued decline in wholesale shipments on a year-over-year basis reduces the inventory further," she wrote in a note to clients, adding that retail sales have outpaced shipments for the past 10 months.
"However, this month leaves us with mixed feelings about the industry," Thompson said. "While we are encouraged by the softening decline in towable shipments, a decline in motorhome shipments is somewhat disappointing (but not surprising given the current consumer environment)."
Separately, Coachmen Industries late Monday suspended its dividend program, news which hit the Elkhart, Ind., company's stock particularly hard in Tuesday.
Here's how recreational vehicle makers fared on Tuesday:
Winnebago Industries Inc., down 86 cents, or 3.2 percent, to close at $26.36.
Thor Industries Inc., down $1.25, or 2.9 percent, to $41.45.
Drew Industries Inc., down $2.19, or 5.4 percent, to $38.06.
Fleetwood Enterprises Inc., down 26 cents to $8.84.
Monaco Coach Group, down 48 cents, or 3.5 percent, to $13.15.
Coachmen Industries, down 62 cents, or 8.3 percent, to $6.86.
