Thor Industries announces preliminary sales figure

[Dean A Van Peursem]

Thor Industries announces preliminary sales figures
Greg Gerber posted on May 04, 2009 05:07
JACKSON CENTER, Ohio -- Thor Industries announced today preliminary sales for the quarter and nine months ended April 30.

Sales in the quarter were $415 million, down from $708 million last year. RV sales were $311 million, down from $601 million last year. Bus sales were $104 million versus $107 million last year.

Sales in the 9 months were $1.08 billion, down from $2.07 billion last year. RV sales were $776 million, down from $1.77 billion last year. Bus sales were a record $305 million, up 1% from $300 million last year.

Cash, cash equivalents and investments on April 30, 2009 were $296 million versus $248 million last year. Backlog on April 30, 2009 was $441 million, down from $526 million last year. RV backlog was $213 million, down from $276 million last year. Bus backlog was $228 million versus $250 million last year.

SOURCE: Thor Industries press release

[richfaa]

I think I posted the number from the last quarter. Bus sales are the only thing that is making any money.Note that RV sales are nearly 50% down from last year.The RV industry has not seen the worst yet. It is questionable if any of the ones that are left will survive in their present form. Thus far Hitchhiker is the only company that "gets it" and has made the decisions that needed to be made to survive. These horrible conditions in the RV industy will have a even greater effect on the quality and workmanship of RV's as the companies strive to cut cost and save money and the worker does not knopw day to day what may happen to his job or his company...

[Dean A Van Peursem]

Richfaa,

What I haven't quite figured out is why Thor's stock price has doubled in the last couple of months. Is it that their cash position is improved --- $296 million versus $248 million last year? It appears out here in the Western part of the country that RV sales have bottomed out and starting to recover. Not sure if that is real fact or RV industry promotional fiction. The Oregon RV manufacturing plants have been devastated.
Having just returned recently from the Phoenix area where home prices have dropped 50% I was startled recently on how much things have deteriorated here. I was out exercising one of my antique tractors way out in the country when I noticed a really nice house for sale on a 20 acre lot. Stopped and checked the RE flyer. Had been appraised for $1,999,000 two years ago. Currently on the market for $999,999 and hasn't sold. That is really gruesome.

I too would be concerned about what kind of quality RV is being built at plants where over half or more of the employees have been laid off. Or the plant has been shut down for a long period. It really depends on whether the owners and management have "gotten it". I don't hold out much hope. When I hear RV manufacturing and engineering qualifying for ISO 9000 certification I might take another look. ISO 9000 certification isn't the complete answer but it is a start. One of the basic tenants of ISO 9000 is to build a product the same way every time. That would be a significant milestone for the whole RV industry. We might even be able to get a wiring diagram! :-)