Thor Industries tumbles after 3Q revenue slips 10 percent

NEW YORK—Shares of Thor Industries Inc. plummeted to a fresh 52-week low Friday after the recreational vehicle maker reported its third-quarter revenue slipped on declining RV sales.

Earlier in the day the Jackson Center, Ohio-based company said revenue for the period ended April 30 fell 10 percent to $707 million as RV sales dropped 12 percent to $600 million.

Bus sales edged up 1 percent to $107 million for the quarter.

The RV sector, along with many other industries, has been squeezed as consumers curb spending due to rising high gasoline and food prices, the continued housing downturn, diminishing credit and recession worries.

Adding to Thor's woes was an 11 percent decline in backlog. RV backlog slid 27 percent to $276 million, while bus backlog as of April 30 was up 16 percent to $250 million. Towables backlog fell 26 percent to $198 million from $267 million, while motor home backlog sagged 30 percent to $78 million from $111 million.

RBC Capital Markets' Edward Aaron lowered some estimates on concerns about towables weakness. The analyst dropped his third-quarter earnings-per-share forecast to 51 cents from 54 cents and cut his 2008 prediction to $2.14 from $2.30.

Aaron reaffirmed a "Sector Perform" rating.

Shares of Thor Industries fell $3.28, or 10.7 percent, to close at $27.45. The stock hit a new low of $26.48 earlier in the session.