Thor reports strong quarterly growth driven by RV market
Posted: 03/07/2013 at 7:00 pm
By: Justin Leighty
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The THOR Motorcoach booth at the RVIA tradeshow in Louisville KY.
“We are pleased with the continued growth in revenues we were able to achieve in the second quarter,” said Bob Martin, Thor president and chief operating officer. “The RV and bus markets remain very competitive, with elevated levels of discounting on certain products. In the first and second quarters, we made the decision to defend our RV shelf space on dealer lots and maintain momentum with our dealers. Similarly, in our bus business we decided to strategically pursue and win certain bus contracts which required more aggressive pricing, including contracts for entry into new markets.”
Thor’s RV sales were $636.6 million, up 27 percent from the second quarter of 2012, with towables up 18 percent and motorized RV sales more than double what they were during the same period of 2011. Bus sales were up nine percent over the same quarter of 2012.
Total sales for the quarter were $741.6 million, up 24 percent from last year’s second quarter. Net income was $19.9 million, up 45 percent over the same period of 2012, and diluted earnings per share were 37 cents, up 48 percent from 2012’s second quarter.
Net income for the first half of the year was up 41 percent over the first half of fiscal 2012, coming in at $50,9 million so far for 2013.
“Thor generated strong gains in both revenues and net income during the second quarter, driven primarily by continued strength in the RV market,” said Peter B. Orthwein, Thor Chairman and CEO. “Our results for the second quarter reflect the dealer optimism that has been building over the past several months, which is now supported by improving retail traffic and sales at the early spring shows. Based on current market trends, we expect continued sales growth and second half operating margins consistent with the second half of fiscal 2012.”
The company is in the process of moving its headquarters from Jackson Center, Ohio, to Elkhart. Most of its RV and bus manufacturing operations are concentrated in this area.