Thor sees nearly 30% drop in full-year earnings
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Elkhart-based recreational vehicle manufacturer Thor Industries Inc. is reporting fiscal full-year net income of $265 million, down from $374 million the previous year.
CEO Bob Martin said the RV industry continues to be impeded by macroeconomic challenges, which also led to a nearly 10% drop in net sales for the year.
Net income for Thor’s fiscal fourth quarter was nearly flat at $90 million, while net sales fell 7.4% to $2.5 billion.
“Thor’s business model and discipline allow us to not just adjust to what we’ve referred to as ‘bouncing along the bottom,’ but to also make internal efficiency improvements which contributed to improving our fourth quarter gross profit margin despite the reduction in our net sales,” Martin said in a news release. “While challenges persist, we are confident in our ability to continue to successfully manage our way through them.”
Chief Operating Officer Todd Woelfer said down markets like the industry is seeing right now confirms to the company that its variable operating model is deal for Thor.
“Unlike prior down cycles, we are experiencing in this down cycle the benefits of long-term strategic initiatives designed to drive stronger margins even in challenging conditions,” Woelfer said. “These strategies include our disciplined production planning, our continued efforts to maximize operating efficiencies as we leverage our variable cost model, and our steadfast focus on improved quality.”
Thor’s stock closed nearly 6.2% higher Tuesday at $109.47 per share.
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