Thor Industries Q3 sales down from $2.51 billion to $1.68 billionChristian Fernsby ▼ | June 8, 2020
Thor Industries announced results for the third quarter of fiscal 2020, which ended April 30, 2020.
Thor Industries Consolidated gross profit margin was 12.2% for the third quarter
Topics: Thor Industries
The third quarter 2020 net sales figure includes $615.3 million in net sales from the European RV segment, $773.4 million in net sales in the North American Towable RV segment and $264.0 million in net sales in the North American Motorized RV segment.
Consolidated gross profit margin was 12.2% for the third quarter of fiscal 2020, compared to 11.7% in the corresponding period a year ago.
The increase in percentage is primarily due to the impact in the prior-year period of the one-time purchase accounting adjustments related to the step-up in the value of acquired inventory of $61.4 million in the European recreational vehicle segment, which decreased the 2019 third quarter gross profit margin, partially offset by the current period decrease in net sales, which increased the manufacturing overhead cost percentage to sales in the current-year period compared to the prior-year period.
Net income attributable to Thor and diluted earnings per share for the third quarter of fiscal 2020 were $24.1 million and $0.43, respectively, compared to net income attributable to Thor and diluted earnings per share of $32.7 million and $0.59, respectively, in the prior-year period.
The Company's effective income tax rate for the third quarter of fiscal 2020 was (7.3)%.
The Company expects a worldwide effective tax rate for the entire 2020 fiscal year ranging between 14% and 17%, before consideration of any unknown discrete tax items.
The global impact of COVID-19 negatively impacted the Company's income before income taxes, which resulted in certain interest income not subject to income tax comprising a higher percentage of pre-tax income and, consequently, a lower effective income tax rate. ■