Thor Announces Increased Sales, Net Income, E.P.S. for Quarter, Six Months

JACKSON CENTER, Ohio, March 10 /PRNewswire-FirstCall/ -- Thor Industries, Inc. NYSE: THO announced results for the second quarter and six months ended January 31, 2008.

Net income for the quarter was $21,602,000, up 18% from $18,252,000 last year. E.P.S. for the quarter were $.39, up 18% from $.33 last year. Sales for the quarter were $599,170,000, up 3% from $584,049,000 last year. Income before taxes in the quarter was $35,206,000, up 34% from $26,242,000.

Net income for the six months was $59,811,000, up 22% from $48,849,000 last year. Diluted E.P.S. for the six months were $1.07, up 23% from $.87 last year. Sales for the six months were $1,362,906,000, up 4% from $1,311,765,000 last year.

RV sales in the quarter were $505,266,000, up 3% from $490,634,000 last year. Bus sales in the quarter were $93,904,000 compared to $93,415,000 last year. RV sales in the six months were $1,169,477,000 up 4% from $1,126,512,000 last year. Bus sales in the six months were a record $193,429,000 up 4% from $185,253,000 last year. RV income before tax was $34,053,000 in the quarter, up 35% from $25,272,000 last year and $91,718,000 in the six months, up 28% from $71,740,000 last year. Bus income before tax in the quarter was $3,556,000 up 13% from $3,154,000 last year and $7,695,000 in the six months, up 25% from $6,174,000 last year. Corporate net costs were $2,403,000 in the quarter versus $2,184,000 last year and $3,727,000 in the six months versus $2,676,000 last year.

Cash, cash equivalents and short term investments on January 31, 2008, were $234.3 million, up from $210.0 million last year and the company continues to have zero debt.

"Gross and net margins increased in both the quarter and six months in each segment-towables, motorized, and buses-due to improved manufacturing efficiencies, lower warranty costs, higher interest income, and a gain on sale of real estate," said Wade F. B. Thompson, Thor Chairman. "We are pleased with these results to date and expect to continue to outperform the competition in the difficult RV market," he added.

Thor is the world's largest manufacturer of recreation vehicles and a major builder of commercial buses.

This release includes certain statements that are "forward looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934 as amended. These forward looking statements involve uncertainties and risks. There can be no assurance that actual results will not differ from our expectations. Factors which could cause materially different results include, among others, additional issues that may arise in connection with the findings of the completed investigation of the Audit Committee of the Board of Directors of Thor Industries, Inc. (the "Company") and the SEC's requests for additional information, fuel prices, fuel availability, interest rate increases, increased material costs, the success of new product introductions, the pace of acquisitions, cost structure improvements, competition and general economic conditions and the other risks and uncertainties discussed more fully in Item 1A of the Company's Annual Report on Form 10-K for the year ended July 31, 2007. The Company disclaims any obligation or undertaking to disseminate any updates or revisions to any change in expectation of the Company after the date hereof or any change in events, conditions or circumstances on which any statement is based except as required by law.

                            THOR INDUSTRIES, INC.
    STATEMENT OF INCOME FOR THE 3 AND 6 MONTHS ENDED JANUARY 31, 2008 and
                                     2007
                      $000 except per share - unaudited

                                       3 MONTHS ENDED JANUARY 31
                                    2008    %             2007        %

    Net sales                   $599,170              $584,049
    Gross profit                 $69,717   11.6%       $61,169      10.5%
    Selling, general and
     administrative              $39,619    6.6%       $37,208       6.4%
    Amortization of
     intangibles                    $200       -          $216          -
    Operating income             $29,898    5.0%       $23,745       4.1%
    Interest income (net)         $2,808     .5%        $2,182        .4%
    Gain on sale of property      $2,308     .4%             -          -
    Other income                    $192       -          $315        .1%
    Income before taxes          $35,206    5.9%       $26,242       4.5%
    Taxes                        $13,604    2.3%        $7,990       1.4%
    Net income                   $21,602    3.6%       $18,252       3.1%
     E.P.S. - basic                $0.39                 $0.33
     E.P.S. - diluted              $0.39                 $0.33

    Avg. common shares
     outstanding-basic        55,758,534            55,654,744
    Avg. common shares
     outstanding-diluted      55,910,429            55,927,479



                                       6 MONTHS ENDED JANUARY 31
                                    2008    %             2007        %

    Net sales                 $1,362,906            $1,311,765
    Gross profit                $170,992   12.5%      $150,337      11.5%
    Selling, general and
     administrative              $84,816    6.2%       $80,415       6.1%
    Amortization of
     intangibles                    $413       -          $454          -
    Operating income             $85,763    6.3%       $69,468       5.3%
    Interest income (net)         $6,644     .5%        $4,905        .4%
    Gain on sale of property      $2,308     .2%             -          -
    Other income                    $971     .1%          $865        .1%
    Income before taxes          $95,686    7.0%       $75,238       5.7%
    Taxes                        $35,875    2.6%       $26,389       2.0%
    Net income                   $59,811    4.4%       $48,849       3.7%
     E.P.S. - basic                $1.07                 $0.88
     E.P.S. - diluted              $1.07                 $0.87

    Avg. common shares
     outstanding-basic        55,757,936            55,634,023
    Avg. common shares
     outstanding-diluted      55,937,211            55,909,970



                    SUMMARY BALANCE SHEETS - JANUARY 31 ($000) (unaudited)

                         2008       2007                    2008        2007
    Cash and                              Current
     equivalents      $87,935    $91,335  liabilities   $278,043    $270,062
    Investments,                          Other
     short term       146,350    118,712  liabilities     47,707      14,725
    Accounts                              Stockholders'
     receivable       187,676    186,309  equity         681,104     685,556
    Inventories       200,975    189,514
    Deferred income
     tax and other     30,165     30,678
    Total current
     assets           653,101    616,548
    Fixed assets      157,366    158,005
    Investments -
     joint ventures     2,912      2,657

    Goodwill          165,663    165,663
    Other assets       27,812     27,470

    Total          $1,006,854   $970,343              $1,006,854    $970,343