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Shares of Jackson Center, Ohio-based Thor Industries Inc. tumbled Tuesday (Jan. 31) after the recreational vehicle and commercial bus maker said it may need to restate two years of financial results due to accounting issues at a subsidiary.
Thor’s board audit committee and independent outside advisers are investigating Goshen, Ind.-based subsidiary Dutchmen Manufacturing Inc.’s inventory, accounts receivable, accounts payable and cost of goods sold.
Analyst John Diffendal of BB&T Capital Markets said some concerns include whether accounting issues will crop up at other units and if the investigation’s costs will drag on full-year 2007 and future results.
Robert W. Baird & Co. analyst Craig Kennison maintained a positive view on the company.
“While the development is unsettling, we note that Thor has earned a reputation over the last 26 years as an honest company run by good people,” he wrote in a client note.
Avondale Partners analyst Kathryn Thompson said she sees Thor implementing greater companywide controls, but thinks the incident is likely an isolated one.
“Given that Thor has not had a similar issue in its recent history as a publicly traded company, we do not necessarily think that the Dutchman incident is indicative of a broader company trend,” she said.