Shares of the recreational-vehicle manufacturer Thor Industries Inc. rose nearly 17% Monday (Sept. 30) after it reported a better-than-expected fourth-quarter profit as sales grew from a recent European acquisition.
As reported by the Wall Street Journal, revenue during the quarter rose 23% to $2.31 billion. The sales increase includes $719.5 million from Erwin Hymer Group SE, which Thor acquired Feb. 1 for $1.9 billion in cash and stock, giving the U.S. company an entrance to Europe. Analysts polled by FactSet expected $2.33 billion.
Quarterly sales in the company’s North American towable recreational-vehicle segment, however, decreased 17.6% from a year ago, and the company’s North American motorized recreational-vehicle sales declined 8.1%.
Kathryn Thompson, chief executive of Thompson Research Group, noted that the company’s backlog of orders shrank at a smaller rate than previous quarters as a reason why shares were up Monday. “Thor’s stock has traded to the momentum of its backlogs,” Thompson said.
The company said it has created an international product-transfer team to target the manufacturing and distribution of Erwin Hymer products in North America.The Elkhart, Ind., company’s quarterly earnings rose 4.4% from a year earlier to nearly $92.1 million, or $1.67 a share. Analysts expected $1.47 a share. For the full story click here.