Recreational vehicle maker Thor Industries Inc. said late Monday (Sept. 29) its fiscal fourth-quarter earnings plunged almost 90% as it continued to weather a tough RV market.
The Associated Press reported that in a regulatory filing, Thor said earnings for the quarter ended July 31 slumped to $5 million, or 9 cents per share, from $50.3 million, or 90 cents per share, in the same quarter last year.
“In the quarter, we accrued $5.4 million in costs related to the sale in June of Thor California, a $2 million write-down of fixed assets to market value, and a $7.5 million goodwill impairment, all of which are one-time costs,” said Wade F. B. Thompson, Thor Chairman.
Sales for the quarter declined 25% to $569.8 million from $754.9 million.
Analysts polled by Thomson Reuters expected fourth-quarter earnings of 30 cents per share on $568.5 million in revenue.
For the full year, Thor said earnings fell to $92.7 million, or $1.66 per share, from $134.7 million, or $2.41 per share, in 2007. Sales slipped to $2.64 billion from $2.86 billion.
Analysts expected earnings of $1.88 per share on $2.64 billion in sales.
RV sales in the quarter were $454.51 million versus $645.4 million in the year-ago period while RV revenue for the full year was $2.2 billion compared to $2.45 billion.
“Importantly, Thor is the only company to show an increase in market share in both towables and motorized recreation vehicles,” Thompson said. “For the seven months ended July 31, Statistical Surveys reported that Thor increased its towable market share to 30.4%, up from 29.2% last year and increased its motorized market share to 15.4% versus 14.1% last year.”
RV companies have been battered recently as high gasoline prices, weak consumer confidence and a difficult credit market continue to undercut sales. Thor said it continued to be affected by “current market conditions.”
“When fuel prices stabilize and retail credit availability improves, we expect to see a rebound in sales from dealers ordering units for stock and expect to benefit from our ability to ramp up production in an industry with fewer manufacturing facilities than before,” the company said in its filing.
Shares of Thor closed Monday at $25.15. The stock is down 34% for year-to-date.