Winnebago Industries, Inc. (NYSE: WGO) shares fell sharply today after the recreational vehicle maker announced disappointing earnings. The company saw its third quarter profit dive 73% as higher gas prices, tigher consumer credit, and a softer economy drove motor home sales into the ground.

"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."

Olson also noted that the industry has seen a decrease in motor home sale sof more than 26% for the first four months of this year and a stead decline of more than 30% in both March and April, which are typically stronger months for recreational vehicles. To help combat the declines, the company plane on closing its Charles City factor and restructure itself.

Many investors should have seen this coming with gas prices skyrocketing higher and recreational spending in general on the decline. However, shares in the company still dropped sharply by 5.69%. The stock is already down some 30% so far this year as many expect things to get far worse before they get any better.

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Huntsman Corporation (NYSE: HUN) shares fell sharply today after Hexion Specialty Chemicals said it may not follow through with its promise to purchase the company. Hexion decided not to pursue the purchase amid Huntsman's deteriorating financial condition that has many investors worried. At least one analyst has reduced his target from $28 to $15 per share amid the crisis that has sent shares plummeting.

The move to cancel the merger comes after Huntsman posted an 84 percent drop in first-quarter profits as it saw raw material and feedstock costs soar to record highs as the U.S. dollar weakened further. Sharp increase in raw material costs have been hitting many companies hard that have not hedged their bets. So far this year, Huntsman shares have slipped some 19 percent and they dropped a further 38 percent during today's trading.

Huntsman President and Chief Executive Peter Huntsman said his company would "vigorously enforce" its rights under the original deal and "seek to consummate the merger on the agreed terms". Analysts do not expected a renegotiated deal price at this time, and expect prolonged litigation to add to the uncertainty of the stock. As a result, Huntsman's shares fell sharply on the day.

Huntsman Corporation shares are trading down $8.12, or 38.93%, to $12.74 on the news.

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Goldman Sachs (NYSE: GS) has managed to surprise investors and avoid the credit crisis once more. The Wall Street powerhouse managed to book $2.1 billion in profit, which topped forecasts and sent shares higher. A sharp decline in leveraged loan activity was offset by a surge in equity underwriting as more companies looked to raise money during the quarter. Asset management and securities services also helped to make a spectacular quarter.

The investment bank noted that its net earnings for the second quarter came in at $4.58 per share, which was loser than the $4.93 per share a year ago, but higher than Wall Street's $3.42 per share estimate. Goldman Sachs also reported revenues that were 7.5% lower to $9.42 billion, but that also topped analyst estimates of $8.74 billion. Shares were already some 10% higher on the week but mobed up marginally on the news.

The impressive results came at the heels of a huge los at rival Lehman Brothers (NYSE: LEH) and at a tough time for investment banks in general. Lehman announced a $2.8 billion second-quarter loss while its management tried to calm investors concerned about a Bear Stearns style collapse on the horizon. Meanwhile, Morgan Stanley is expected to see its profit plunge some 60% from a year earlier.

In the end, Goldman Sachs continues to impress analysts and beat other competitors in the investment banking arena. This should also give them an edge in the future as they are able to attract and retain some of the best personnel in the industry thanks to the steep cuts elsewhere. It will be interesting to see where all of these banks are left when the market eventually recovers and they are looking to hire once again...

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