Thor Industries Reporting Record 3Q Revenue
Preliminary consolidated sales from continuing operations in the third quarter were $1.05 billion, up 13% from $929.8 million last year. Towable RV sales during the period grew 8% to $801.5 million from $742.5 million in the third quarter of fiscal 2013. Motorized RV sales in the third quarter increased 31% to $245.6 million from $187.3 million in the same quarter a year ago.
For the nine months, preliminary consolidated sales from continuing operations were $2.48 billion, up 6% from $2.33 billion last year. Towable RV sales for the nine months were $1.90 billion, which was flat compared to last year. Motorized RV sales rose 38% to $585.5 million from $423.3 million the previous year.
Consolidated backlog as of April 30 was $820.2 million, up 26% from $649.6 million at the end of the third quarter last year. Towable RV backlog increased 25% to $548.6 million, compared to $439.6 million from a year ago while motorized RV backlog increased 29% to $271.6 million from $210 million.
Thor’s operations in the third quarter of fiscal 2014 continued to be adversely impacted by a variety of factors including the harsh winter weather during February and early March, which in turn affected certain costs during the quarter. In addition, the company continued to incur start-up costs associated with new production facilities and experience the effects of the ongoing tight labor market in northern Indiana. The RV industry is also facing logistical challenges in making timely deliveries to dealers given the shortage of drivers at transport companies that is more acute than prior years.
“Although we still faced a number of factors, particularly in the first half of the quarter, that affected our operations and shipments, strong demand for our products resulted in record sales,” said Bob Martin, Thor president and CEO. “As we continue to navigate through some near-term challenges, we remain optimistic about our business and our industry, as strong early retail sales results have boosted the confidence of dealers as we reach the heart of the peak selling season.
“We continued to demonstrate our long-term confidence in the RV industry with our acquisition of KZ Inc., which closed on May 1, and with our recent investment in our newest motorized plant in Elkhart, which is in the process of ramping up for production in the fourth quarter. These moves leave us well positioned for a solid finish to our fiscal year.”
Thor expects to report its third-quarter operating results on June 5.