Thor Monitors for Supplies Disruption Due to Virus
RV maker Thor Industries is based in Elkhart. (photo courtesy of Thor Industries)
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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 recreational vehicle manufacturer Thor Industries Inc. (NYSE: THO) is reporting second quarter net income of $27 million, compared to a $5.4 million loss during the same period a year ago. At the same time, the RV maker acknowledges it is closely monitoring the coronavirus situation and its potential impact on suppliers.
“The last week or two have seen a sharp increase in the concern and market reaction related to the coronavirus and the effect it may have on individuals and communities impacted by the virus, supply chains – particularly for materials sourced from China or other areas that are facing increased infection rates, and on the domestic and global economies,” said Bob Martin, chief executive officer for Thor Industries.
The company said it has not experienced any production shutdowns at any of its facilities in the U.S. or Europe as a result of the coronavirus. It is however seeking alternative sources of supplies and raw materials.
On the demand side, Thor said it has not seen any reduction of dealer orders nor any negative impact on retail sales.
The company said it does not expect the virus to delay the startup of its recently announced Hymer USA facility, which will operate in Bristol. The new subsidiary will produce RVs for the North American market but use European-style manufacturing practices.
The move stems from Thor’s 2019 acquisition of Germany-based Erwin Hymer Group, one of the leading RV makers in Europe.
“During the second quarter, we took a significant step forward in realizing additional value from the integration of EHG with the announcement of the formation of our new subsidiary, Hymer USA,” said Martin. “Absent the uncertainties related to coronavirus, as we enter the peak selling quarters of our fiscal year in both North America and Europe, we are optimistic about our company, our products and the global RV marketplace.”
Click here to view the Thor Industries earnings report.