Thor sees expected quarterly drop in profit
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Elkhart-based Thor Industries Inc. is reporting fiscal first-quarter net income of $53.6 million, down from $136 million during the same period last year. CEO Bob Martin said the results were largely expected due to the current economic environment and he is pleased with the company’s start to the fiscal year.
Thor is also reporting quarterly net sales of $2.5 billion, compared to $3.1 billion in the same quarter last year.
Martin said independent dealer destocking efforts in North America and seasonally lower production in the company’s European segment impacted shipment volumes during the quarter.
“Despite this, our fiscal 2024 first quarter financial performance demonstrates the collective efforts of our operating companies to prioritize profitability in a soft demand environment,” Martin said in a news release. “Against this backdrop, our experienced operating teams remain focused on prudently managing cost structures and enacting commercial strategies to adapt to evolving market conditions.”
Thor saw declines in sales and income for its North American towable and motorized RV business segments. However, the company had a 40% increase in net sales and turned a profit in its European RV segment.
Chief Operating Officer Todd Woelfer said the company continues to navigate the “prolonged challenging” RV environment in North America.
“Regardless of the prolonged macro challenges, our dedication to our strategy of prudent partnership with our dealers remains steadfast,” Woelfer said. “As a consequence of our actions and North American dealer independent inventory destocking, we and our independent dealer partners are much better positioned to outperform as we move ahead.”
Martin said the company will continue to monitor retail trends and adjust production accordingly.
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