Thor Industries Inc.’s warning about rising tariff-related costs in its third-quarter earnings report sent shares plunging to 2018 lows, but CEO Bob Martin told CNBC on Thursday that the company is finding ways to blunt the impact. (To view a video click here or scroll to the right side of the RVBUSINESS.com home page).
“We thought it’d be minimal,” the CEO admitted in a “Mad Money” interview with Jim Cramer. “Today, they’re still kind of all over the board and we’re just finding ways to kind of counteract them whenever we can.”
For Thor, the United States’ largest recreational vehicle manufacturer, that means cutting raw costs and “de-contenting,” or taking certain ancillary products and features out of its higher end RVs.
Thor’s stock has been under pressure since the Trump administration enacted steel and aluminum tariffs in May, which hike Thor’s costs by stymieing cheap imports.
“We still don’t know exactly where they’re going, but we’re a very reactive company,” Martin told Cramer. “We’re still very optimistic that we can keep it to a minimal effect.”
Like mega-dealer Camping World Holdings Inc., Martin said the weather also weighed on Thor’s third-quarter results.
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