Thor Profit Drops in Fiscal Q3

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Thor Industries is headquartered in Elkhart. Thor Industries is headquartered in Elkhart.
ELKHART -

Elkhart-based Thor Industries Inc. (NYSE: THO) is reporting fiscal third quarter net income of $31.4 million, down from $180 million during the same period last year. Despite the drop, the recreational vehicle manufacturer says it hit record net sales of $2.5 billion for the quarter.

Thor says the results reflect the impact of ongoing efforts by North American RV dealers to reduce inventory levels to better match demand. The company adds the results included costs related to the February acquisition of Erwin Hymer Group in Europe, totaling nearly $75 million. 

"EHG made a significant contribution to our top-line results for the quarter, and as we move through some of the transitional costs, we look forward to EHG's meaningful contribution to our bottom line as well," Bob Martin, chief executive officer of Thor, said in the earnings release. "This transformational acquisition is a critical first step in our long-term strategic plan to expand outside of the North American market. Beyond the acquisition, we have seen improvements in the operating results of our North American segments, reflecting a more stable environment as we finish the fiscal year."

Colleen Zuhl, chief financial officer for Thor, says the company's main focus is to reduce its overall debt levels. Thor was able to reduce its debt by $40 million during the quarter and, to date, the company has paid down about $255 million toward its debt.

"As we generate future cash flow, we will balance our strategic goal to invest in the continued growth of our business along with the financial goals of reducing our net debt level and returning cash to shareholders," said Zuhl.

You can connect to the full earnings report by clicking here.

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