Acquisition Costs, Low Demand Lead to Q2 Loss For Thor
ELKHART - Elkhart-based Thor Industries Inc. (NYSE: THO) is reporting a fiscal second quarter net loss of $5.4 million, compared to net income of $79.8 million during the same period the previous year. The recreational vehicle manufacturer says the results reflect the impact of balancing production with market demand.
Thor says wholesale RV shipments declined during the quarter relative to retail sales as dealers continued to sell through existing inventories before placing new orders. Acquisition-related costs totaling more than $42 million also played a factor in the earnings report.
"We made considerable progress on a number of fronts in the second quarter, supported by a positive start to the 2019 retail show season, with a number of the larger shows posting strong attendance levels, which supports our view of a stable long-term retail environment," said Bob Martin, chief executive officer of Thor. "We were also pleased to have closed our acquisition of EHG just after the end of the second quarter. This transformational acquisition represents a major step forward in our long-term strategic growth plan, and our entire team is focused on integrating EHG and providing strong returns for our shareholders."
Martin says although the company is optimistic for the long term, he expects to face challenging conditions in the short term, as dealers continue to reduce inventory levels. He says the third quarter results for this fiscal year will also face difficult comparisons to the record numbers posted in the previous fiscal year.
You can view the full earnings report by clicking here.