Thor Ind. Profit Tops Estimates - Update

(RTTNews) - Recreational vehicle maker Thor Industries Inc. (THO), Thursday reported a better-than-expected increase in fourth-quarter profit, helped by sales of its towable and motorized carriers.

Sales of recreational vehicles are an indicator of economic activity, as in weak economic situations, consumers often delay or put away such purchases.

Meanwhile, Thor said its prospects for the future appear bright.

"We are pleased to end fiscal 2013 on a positive note with continued momentum in sales and earnings," said CEO Bob Martin. "The recent actions we've taken to divest non-core businesses and expand our RV business through acquisition leave us optimistic about the future of Thor."

Thor, based in Elkhart, Indiana, posted fourth-quarter net income of $58 million or $1.09 per share, up from $44 million or $0.84 per share last year.

On average, six analysts polled by Thomson Reuters expected earnings of $0.95 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the quarter climbed 19 percent to $914 million from $770 million a year ago.

Analysts estimated sales of $964.54 million for the quarter.

Sales at its main segment, Towable recreational vehicles (RV), climbed 13 percent year-over-year. Motorized RV sales jumped 56 percent.

The company gained from a 2 percent improvement in gross margin to to 15.3 percent for the quarter.

Thor is betting on acquisitions to spur growth. In August, the company acquired innovative RV maker Livin' Lite. Wakarusa, Indiana-based Livin' Lite is known for its advanced lightweight aluminum construction applied to a variety of smaller RVs. Livin' Lite is expected to generate sales of about $24 million for calendar year 2013.

In July, Thor agreed to sell its bus business to Allied Specialty Vehicles for $100 million, as it plans to focus on its core recreation vehicle business.

Thor stock closed Thursday at $56.43, down $0.30 or 0.53%, on a volume of 809 thousand shares on the NYSE. In after hours, the stock gained $0.18 or 0.32%.