Thor Industries Q1 Profit Down - Update

(RTTNews) - Recreational vehicle maker Thor Industries Inc (THO), Monday reported a drop in profit for the first profit, reflecting the absence of earnings from discontinued operation despite strong revenue growth.

Elkhart, Indiana-based Thor Industries' first-quarter profit dropped to $38.9 million or $0.73 per share from $41.1 million or $0.77 per share last year.

Income from continuing operations for the quarter rose to $39.2 million or $0.73 per share from $36.4 million or $0.68 per share in the prior year quarter. On average, analysts polled by Thomson Reuters expected earnings of $0.81 per share for the first quarter.

Net sales for the first quarter rose 15 percent to $921.99 million from $799.96 million a year ago, as sales of both towable and motorized RVs posted double-digit growth. Analysts had a consensus revenue estimate of $903.87 million for the first quarter.

Towable RV sales rose 12 percent to $699.8 million while motorized RV sales jumped 25 percent to $222.2 million from last year.

"Thor posted solid improvements in net sales and income from continuing operations in the first quarter of fiscal year 2015 driven by continuing growth in both our motorized and towable operations," said CEO Bob Martin.

Gross margins dropped to 12.8 percent from 13.1 percent last year, hurt by tight labor market in northern Indiana, changes in product mix and a slight increase in warranty expenses.

THO closed Wednesday's trading at $57.83, down $0.93 or 1.58%, on the NYSE. The stock further dropped $1.33 or 2.30% in the after-hours trade.