Thor Industries Inc. (THO) posted a 64% rise in profit to $40.6 million in the fourth quarter of its fiscal year ended July 31, 2010 from $24.8 million in the same quarter of previous year. The rise in profit was driven by higher sales and the company’s cost-cutting measures.
 
On a per share basis, profit improved 73% to 78 cents from 45 cents a year ago. The profit exceeded the Zacks Consensus Estimate by 15 cents per share.
 
Sales in the quarter surged 51% to $663.8 million, exactly meeting the Zacks Consensus Estimate. Sales in the Recreational Vehicle (RV) segment went up 67% to $563.7 million, Towable RV segment increased 61% to $465.7 million, Motorized RV segment soared 99% to $97.9 million and the Bus segment, including buses and ambulances, rose marginally by 3% to $100.1 million.
 
Operating profit rose 78% to $55.9 million from $31.5 million a year ago. Income before taxes increased 87% to $62.7 million from $33.5 million a year ago.
 
Pre-tax income in the RV segment more than doubled to $57.8 million from $24.8 million last year, Towable RV segment exactly doubled to $52.2 million from $26.1 million in the prior year and in the Motorized RV segment was $5.6 million versus a loss of $1.3 million a year ago.
 
Annual Results
 
For the fiscal year ended July 31, 2010, Thor Industries reported a more than six-fold increase in profit to $110.1 million or $2.07 per share compared with $17.1 million or 31 cents per share a year ago. The profit was higher than the Zacks Consensus Estimate of $1.92 per share.
 
Sales in the year shot up 50% to $2.28 billion, exactly meeting the Zacks Consensus Estimate. Sales in the RV segment increased 66% to $1.85 billion, Towable RV segment rose 63% to $1.56 billion, Motorized RV segment escalated 81% to $292 million and the Bus segment inched up 5% to $428 million.
 
Operating profit in the year increased about six-fold to $159.2 million from $27.5 million a year ago. Pre-tax income rose more than seven-fold to $171.4 million from $23.4 million in the previous year.
 
Financial Position
 
Thor Industries had cash and cash equivalents of $247.8 million as of July 31, 2010 compared with $221.7 million as of July 31, 2009. The company had stockholders’ equity of $657.3 million as of July 31, 2010 compared with $705 million a year ago.
 
Thor Industries, a Zacks #3 Rank (Hold) stock, manufactures and sells a range of RVs and small and mid-size buses, as well as related parts and accessories in the U.S. and Canada. The company – based in Jackson Center, Ohio – markets its vehicles through independent dealers to municipalities and private purchasers, such as rental car companies and hotels.
 
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