Recreational vehicle maker Thor Industries Inc. (THO: Quote), Thursday reported a 45 percent increase in second quarter profit, as revenues grew on "continued strength" in RV market. However, earnings for the quarter fell short of analysts' estimates, while revenues surpassed expectations.
Thor's net sales for the second quarter grew 24 percent to $741.6 million from $597.0 million last year. Analysts polled by Thomson Reuters had consensus revenue estimate of $715.7 million for the quarter. Thor makes various recreational vehicles and small buses, including Airstream and Heartland brand recreational vehicles, and Champion buses.
Revenues from recreational vehicles, which generates majority of the revenue, rose 27 percent to $636.6 million, while bus segment was up 9 percent to $105.0 million.
Chief Executive Peter Orthwein said, "Thor generated strong gains in both revenues and net income during the second quarter, driven primarily by continued strength in the RV market. Our results for the second quarter reflect the dealer optimism that has been building over the past several months, which is now supported by improving retail traffic and sales at the early spring shows."
Sales of recreational vehicles are an economic indicator that point out the current economic conditions --whether it is going upward or downward-- as consumers delay or put away the discretionary purchases of motor homes and trailers when weak economic condition prevail.
Jackson Center, Ohio-based Thor's second-quarter profit improved to $19.9 million or $0.37 per share from $13.7 million or $0.25 per share last year. Analysts expected earnings of $0.38 per share for the quarter. Analysts' estimates typically exclude special items.
THO closed Thursday's trading at $38.44, up $0.11 or 0.29%, on a volume of 0.4 million shares, on the NYSE.
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by RTT Staff Writer
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