Thor Profit Rises, But Sales Miss Estimates; Stock Down - Update

(RTTNews) - Recreational vehicle maker Thor Industries Inc. (THO) Monday reported a higher first-quarter profit, helped by strong demand for motorized vehicles, partly offset by weak sales of towable carriers. While earnings for the quarter topped Wall Street estimates, sales came in below expectations.

Shares of the company slid about 5 percent in after-hours trade on the New York Stock Exchange.

"Thor made significant progress toward achieving our strategic goals over the past year and that is evidenced by our improved financial results," said CEO Bob Martin.

Martin conceded that the company faced short-term challenges in the transition of its first motorized production line to Wakarusa, Indiana. The company closed two smaller production facilities on the west coast and is in the process of consolidating production into a complex in Oregon.

Thor is one of the world's largest manufacturers of recreational vehicles. Sales of these vehicles are an indicator of economic activity, as in soft economic conditions, consumers may delay or avoid such purchases.

The Elkhart, Indiana-based company posted quarterly net income of $41 million or $0.77 per share, compared with $31 million or $0.58 per share last year.

On average, eight analysts polled by Thomson Reuters expected earnings of $0.70 per share for the quarter. Analysts' estimates typically exclude special items.

Thor operates through two segments: Towable Recreational Vehicles and Motorized Recreational Vehicles.

Consolidated sales for the quarter grew 5 percent to $800 million from $761.4 million a year ago. Analysts expected sales of $844.74 million.

Gross margin for the quarter grew to 13.1 percent from 12.1 percent in the prior year.

During the quarter, Thor completed the acquisitions of Livin' Lite and Bison Coach, expanding its breadth of products in complementary towable RV markets.

Thor stock closed Monday at $54.25, up $0.18 or 0.33%, on a volume of 554 thousand shares. In after hours, the stock dropped $2.77 or 5.11% at $51.48.