Recreation-vehicle and bus manufacturer Thor Industries Inc. (THO) reported Wednesday a sharp fall in third-quarter profit, reflecting a marked drop in sales of recreation vehicles. The results came in below consensus estimates by 6 cents.
For the third quarter, net income declined to $2.10 million or $0.04 per share from $27.85 million or $0.50 per share in the previous year.
Net sales for the quarter declined significantly to $415.47 million from $707.93 million in the year-ago period.
On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.10 per share on revenues of $415.14 million. Analysts' estimates typically exclude special items.
Recreation vehicles sales for the period decreased to $312.0 million from $601.0 million, while bus sales came down to $103.4 million from $107.0 million in the same period last year.
Thor's chairman, Wade Thompson, said that the company incurred recreation vehicle goodwill impairment charge of $9.7 million and a one time $4.7 million increase in bus self insurance and other reserves in the latest quarter.
Selling, general and administrative costs reduced year-over-year to $34 million from $47.9 million.
For the nine-month period, net loss was $7.64 million or $0.14 per share, compared to profit of $87.67 million or $1.57 per share in the past year.
Net sales for the period slid year-over-year to $1.08 billion from $2.07 billion.
THO is currently trading at $23.01, up $1.93 or 9.16%, on the NYSE.
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