Thor Industries Inc. recorded over $1 billion in sales at the midway point in fiscal 2006, highlighting a report that showed record earnings and revenues for the company’s second quarter and first six months, ended Jan. 31.
“Several factors contributed to this record performance, including continuing exceptional strength in our towables business; a decline in warranty costs in the quarter; profits at Thor California versus a loss last year; and improvements in bus sales and profits,” said Wade F. B. Thompson, chairman of the Jackson Center, Ohio-based company.
The builder reported net income for the second quarter was $31.9 million, up 54% from $20.6 million a year ago, while sales improved 20% to $642 million from $537 million.
Net income for the six months rose 35% to $75.2 million from $55 million the previous year and sales during the period increased 20% to $1.4 billion compared with $1.1 billion.
Thor said pre-tax RV income during the quarter was $52 million, up 55% from $33.6 million the previous year, and increased 37% to nearly $122 million for the six months. Quarterly RV sales rose 19% to $571 million while six-month revenues increased 19% to $1.25 billion.
“Our RV unit retail sales in the quarter, excluding units to hurricane evacuees, were up 18% to 12,975 units versus 11,027 units last year, based on our internal tracking system,” Thompson said. “In January 2006, our RV retail unit sales were up 34% over last year, excluding hurricane related units. With our record cash and backlog we expect increases in sales and profitability to continue.”
The company noted that in calendar 2005 Thor increased market share in all of its RV product categories, according to Statistical Surveys Inc., including an increase from 29.8% to 30.8% in its travel trailer and fifth-wheel business.
In addition, Thor’s board of directors voted to increase its quarterly dividend 40% from 5 cents per share to 7 cents per share.