Thor Profit Sees Sharp Drop in Q1

Posted: Updated:
ELKHART -

Elkhart-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.

  • Perspectives

    • Using The Police as a Viable Resource

      Your local law enforcement agency exists to safeguard the community, and that includes your organization's facilities. To protect your places and people effectively, officers need you to play an active role. First, the police want you to call if something isn’t right. There’s a common misconception that officers will be angry if a call they receive turns out to be unfounded, or that they’ll make light of the situation or caller. The reality is that police...

    More

Subscribe

Name:
Company Name:
Email:
Confirm Email:
HTML
INside Edge
Morning Briefing
BigWigs & New Gigs
Life Sciences Indiana
Indiana Connections
INPower
Subscribe
Unsubscribe

Events



  • Most Popular Stories

    • Chamber Unveils 'Best Places to Work'

      The Indiana Chamber of Commerce has released its list of the Best Places to Work in Indiana. This year's list features 125 companies throughout the state, including more than 40 that were not on the list last year. The chamber will unveil company rankings April 30 at an awards dinner at the Indiana Convention Center in downtown Indianapolis. Winners are sorted into four categories based on size. Out-of-state parent companies must have at least 15 full-time employees in Indiana to...

    • Public, Private Investment Driving Speedway Growth

      Speedway leaders say the town is full speed ahead with millions of dollars in public and private projects that will help change the landscape of the Marion County community. At the heart of them all, says Town Manager Jacob Blasdel, is the new Town Hall in an old PNC Bank building that will house all of Speedway's town offices. Also in the works are a recently-announced $8 million mixed-use proposal on Main Street from Rebar Development, the soon-to-open $36 million Wilshaw...

    • Indiana Rural School Clinic Network Expands to Pekin

      East Washington School Corp. has announced that East Washington Elementary School is now a participant in the Indiana Rural School Clinic Network. Supported by Ascension/St. Vincent Salem, the school now has a telehealth clinic available to its students and staff. 

    • The bill now moves to the Senate Appropriations Committee.

      Soccer Stadium Funding Added to CIB Bill

      The Indiana Senate Appropriations Committee has approved a bill that includes funding for a new soccer stadium in Indianapolis, however the stadium may not necessarily become home to the Indy Eleven. Our partners at WIBC report the bill authorizes financing for a stadium to host a Major League Soccer team; the Indy Eleven play in the United Soccer League. The bill also fund the expansion of the Indiana Convention Center and two hotels in downtown Indy, as well as extend the...

    • Kite FFO Dips, Plans to Sell Off Properties

      Indianapolis-based Kite Realty Group Trust (NYSE: KRG) is reporting full-year Funds from Operations of $167 million in 2018, down from $171 million the previous year. The company has also announced plans to offload up to $500 million in assets in an effort to reduce its debt.