Thor Profit Sees Sharp Drop in Q1
Thor relocated its headquarters to Elkhart County in 2013.
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowElkhart-based Thor Industries Inc. (NYSE: THO) is reporting fiscal first quarter net income of $14 million, down from $128 million during the same period last year. The recreational vehicle manufacturer says the drop is due in part to efforts to balance production with market demand and acquisition-related expenses.
Net sales for the first quarter also dropped more than 21 percent to $1.76 billion. Thor says it spent the last year strategically increasing capacity while dealers have taken steps to reduce their inventory. The company is continuing its work to adjust production to match current wholesale demand.
Bob Martin, chief executive officer for Thor, says the company’s underlying markets remain healthy as consumer confidence remains high, unemployment remains low, and there is "ample access" to credit for RV buyers.
"Our first quarter 2019 financial results reflect the return to normalized historical levels of first-quarter revenue following the unprecedented record first quarter of fiscal year 2018," said Martin. "As dealers continue to right-size inventory, we are taking advantage of our flexible production and variable cost model to align Company production with demand, and I continue to be optimistic about Thor’s long-term growth potential and ability to generate value for our shareholders, especially with the pending strategic acquisition of EHG."
Thor also incurred $14.5 million in costs related to its $2.4 billion acquisition of Germany-based manufacturer Erwin Hymer Group SE, which is expected to close by the end of the year.
You can view the full fiscal first quarter earnings report by clicking here.