Drew Industries, Inc. (NYSE:DW) CEO Leigh Abrams said 2008 is turning out to be a “very challenging year” for the White Plains, N.Y.-based RV and manufactured homes maker. Abrams made the comments during a midday Monday conference call.

“The turmoil in the real estate industry and the mortgage markets and the focus on recession all have severely impacted consumer confidence, which was recently at its lowest level in the last five years,” Abrams said. “Generally, under such conditions, purchases of discretionary big-ticket items such as RV and boats slow down. In spite of these conditions, we are pleased with our first-quarter results.”

The possibility of new legislation for Title 1 programs, which provide Federal Housing Authority-backed mortgages, would help boost the manufactured homes industry, the CEO said. Proposed legislation would boost the amount that the FHA is allowed to guarantee on a manufactured home to about $70,000 from less than $50,000.

“If this legislation is finally enacted, it could represent a good boost for the manufactured housing industry,” Abrams said.

The chief executive said the remainder of 2008 remains a “puzzle.”

“My gut tells me that RV total sales will be down more than 10%, which conforms to the projection of the [Recreational Vehicle Industry Association] of a 13% decline in shipments of fifth-wheel RVs,” Abrams said. “My gut also tells me that this will be the first year that is not aided by hurricane-related housing in a long time. We will see the manufactured housing industry report flat to slightly up shipments.”

The balance of the year is likely to remain “difficult,” CFO Frederic Zinn, who will take the helm as president in late May, said. Company management will also have to fight the rising cost of steel and aluminum, Zinn said.

Abrams said Drew Industries will continue to report good results, but likely not equal to 2007’s results, because of the firm’s strategies of new product introductions, market share growth, strategic acquisitions and operational efficiencies.

Early Monday, Drew Industries posted first-quarter net income of $9.1 million, or $0.41 per share, down 5% from $9.6 million, or $0.44 per share, a year earlier. The lower quarterly profit still managed to beat Wall Street’s expectation of earning $0.39 per share.

Net sales for the three months ended March 31 dipped 8% to $159 million from $173 million during the prior-year period. Wall Street analysts anticipated $164 million.

In midday trading, DW shares are up 1.85%, or $0.42, at $23.17.