Winnebago profit skids 73 pct in 3Q

"The motor home market has changed significantly in the past year, with dramatic declines in the past few months," CEO Bob Olson said in a statement. "Discretionary purchases have declined in the United States as the country is faced with unstable fuel prices, consumer confidence at 16-year lows and a tighter credit environment."

He said he expects no improvement in the industry for the rest of 2008.

Winnebago shares tumbled almost 10 percent.

The Forest City-based motor home manufacturer earned $3 million, or 10 cents a share, in the three months ended May 31 compared with a profit of $11.3 million, or 35 cents a share, a year ago.

Sales fell almost 40 percent to $139.7 million from $231.7 million a year ago.

The latest net income figure included a tax benefit of $8.9 million.

The company reported an operating loss of $6.9 million compared with an operating income of $14.7 million a year ago.

Analysts surveyed by Thomson Financial expected earnings of 3 cents a share on higher sales of $157.6 million. The estimates typically exclude one-time items.

Analyst Craig Kennison with Robert W. Baird & Co. said in a report issued Friday the company's pretax loss was below expectations. He said the tax benefit amounted to 24 cents a share, leaving the company with a pretax loss of 14 cents a share, significantly worse than his estimated loss of 7 cents.