Sector Snap: RV makers fall on Monaco Coach forecast

The sector, along with many other industries, has been pressured of late as consumers tighten spending due to the continued housing downturn, eroding credit, escalating gas and food costs and recession concerns.

Earlier in the day Monaco Coach fell to a first-quarter loss, blaming a drop in consumer spending. The Coburg, Ore.-based company also said it expects a second-quarter loss due to uncertain economic conditions.

Monaco Coach's stock fell $1.12, or 13.3 percent, to $7.33 in morning trading. The company's shares plunged to a nearly 10-year low of $6.50 earlier in the session.

RBC Capital Markets analyst Edward Aaron said Monaco Coach's quarterly results, which included drops in motorhome and towable retail sales, are indicative of current economic conditions. He also cautioned on inventory levels.

"Dealer inventories are still too high relative to demand and will need to come down further to reflect a significantly lower rate of retail sales activity, in our opinion," he wrote in a client note.

Aaron reaffirmed an "Underperform" rating.

Elsewhere in the sector, shares of Thor Industries Inc. dipped 3 cents to $28.98. Winnebago Industries Inc.'s stock dropped 30 cents, or 2 percent, to $14.58. The stock hit a new 52-week low of $14.30 earlier.

Shares of Fleetwood Enterprises Inc. shed 11 cents, or 2.9 percent, to $3.68. The stock earlier touched a year low of $3.55.