financial condition of airstream company

[StreamNTyme]

Has anyone heard anything about the financial condition of Airstream in this economy?

[CanoeStream]

I don't know that this question has one answer. The answers may be no more exact than:
http://www.airforums.com/forums/f224...ted-46029.html
http://www.airforums.com/forums/f314...mes-45973.html
http://www.airforums.com/forums/f161...yle-44188.html

It all comes down to Thor. Thor Industries Inc. News - The New York Times. You'll find the boardrooms look at this over the long run. And in 6-12 months the view should be more clear. My opinion? Airstream is a niche product but it sells itself with a modest amount of marketing. Already got an Airstream? No problem mon...

At least if corporate earnings go to suppliers of food, I hope it's not Campbell Soup that picks up the Twinkie pieces. Sorry -- lame Beatrice fears just below the surface.

[jcanavera]

Nope, but what I would be worrying about more is the financial condition of dealers. If they slip under then Airstream loses an outlet and that ultimately impacts them.

Airstream's decision to drop the motorhome line may have been a pretty smart move. You wonder how companies like Winnebago whose entire product line is based on fossil fueled motors can survive for long.

If I'm right about my Thor history, Airstream was the economic engine that originally provided the earnings for Thor to branch out into other product lines.

[cammur]

Thx, Canoe, for a nice NYTimes summary page on Thor. I didn't realize the Times was making that sort of effort on its business pages.

Note the November 4th report of Thor earnings & sales - way down but cash appears strong. They say they can weather things, but what else can they say.

[hookedonclassic]

Teton Homes closed doors and they made one of best high end 5's. There will be others that will close before it's over. Hopefully, not AS.

[wheel interested]

Still... I suppose it is vanity but Airstream is not just another line of SOBs, and I think it would be wise not to hold it equal to bottom line statistics. I know nothing but suspect that cranking them out and exercising cost controls runs paralell to quality control issues. Scarf up other lines of RVs...OK... but put them all under the same status quo for sales verses costs and Airstream has suffered needlessly because their base was established on qualitity and reputation and not on volume and profits.

[TomW]

Airstream is not a company per se. As Canoe_Stream mentioned, it is now part of a bigger company who makes LOTS of travel trailers.

My take is that the present owner recognizes Airstream as a flagship brand, and will not allow it's extension into luxury travel trailers to keep it's head below water for too long should Airstream's individual returns not keep pace with all the SOBs the company also puts out.

Tom

[PeeWee]

Airstream was the seed company that set up the Thor Corporation in the RV Industry. They have grown from modest beginnings to the largest RV Corporation in the World.

Yes, Fleetwood was once the big boy on the block. But Thor passed them by. Fleetwood made many, many, many administrative and management decissions that imploded the company.

Airstream like any RV Manufacturer in today's economic climate are hurt by what's happening. Because the RV Industry is in a different menu, they will not suffer as badly as the American auto industry.

The American RV Industry will need to survive the credit market, there is little or none; get over 2nd home mortgage loans, and quickie deals.

Airstream, if any, of Thor's products has a longevity and recognition unlike any other product being offerer.

Tough times, yes! Funeral, no!

Dale

[azflycaster]

Thor sold one of it's lines (ThorCalifornia) but still has many others including the one that got them started, Airstream. One big plus for Thor is the Commercial Bus business which is made up of 3 manufactures. When fuel prices shot up earlier this year their orders increased. Thor may be forced to do some more trimming of it's RV business, but I would think that Airstream will survive.

[TROPHYJIM2]

Airstream factory is shut down for 5 weeks; due to market conditions. I don't remember in recent history that they shut down for this length of time.

[Mike Leary]

Originally Posted by jcanavera

product line is based on fossil fueled motors can survive for long

You guys towing with bikes, still?

[markdoane]

The commercial bus side of the business has grown by 30% over the last two years. Thor now owns over 1/3 of the small/mid-size bus market in the US.

[Jim & Susan]

Originally Posted by CanoeStream

......It all comes down to Thor. Thor Industries Inc. News - The New York Times. You'll find the boardrooms look at this over the long run. And in 6-12 months the view should be more clear. My opinion? Airstream is a niche product but it sells itself with a modest amount of marketing. Already got an Airstream? No problem mon...

At least if corporate earnings go to suppliers of food, I hope it's not Campbell Soup that picks up the Twinkie pieces. Sorry -- lame Beatrice fears just below the surface.

Interesting read, Bob. A couple of things popped out at me. The insiders are by no means dumping their stock and the Thor stock is rated as a "hold" (by whom??). Also, nice to see that there are a few companies around that keep a board with plenty of "gray hairs" running the show. My apologies to the younger folks that might be reading this. Nothing is better than real world experience.

Jim

[Over59]

Thor has cash, no debt, and too many dealers with too much produce. Rumor is Classics will be available only by special order. I didn't know about the bus business. I'll need to do some homework as that makes them attractive, eventually. They may have a problem if the credit problems don't turn around by 2010. Of course if the new guy lets people open their IRA's for home payments or purchases then watch out. Alot of folks could pack it in and hit the road. Pay off the morgage with the tax free money, sell the house, buy a land yacht and hit the road to see America while there is still something to see.
Coachmen and Fleetwood look DOA. Thor may be the one to survive and get pricing power in 2012.

[PeeWee]

I lived and worked at Airstream, owned by family, then privately held and then by Beatrice. I have worked in the modular building business owned by Kaiser Aluminum, Fleetwood Enterprises at their Pace Arrow plant in California and Penssylvania, Kit Manufacturing plant in Chino, CA, and Executive Industries in Anaheim and Chino, CA.

So I have seen ups, downs, slowdowns, layoffs, hiring, dealer's startups, dealers go out of business and just about everything can happen in an industry that has products that nobody really needs to own. A true luxury that isn't need to survive in life.

With that in mind all of us that have had the priviledge to own an Airstream, or other RV's should consider ourselves lucky. Boat owener too!

Thor has been a very solvent corporation with acquisitons of very solid companies. One of the reasons they sold off the California operations was the difficulty of doing business in that state.

I have read the blogs and it seems that there is attempt to grasp that the current economic crisis is going to shut the doors at Airstream. I don't think so. But I do think there will be months if not a few years to get back to its former production rates.

I have been through recessions before. I have seen productions schedules increase dynamically and shrink to controlled shutdowns.

We are in a passing problem that will correct its self.

[Excella3287]

Read this yesterday, gives an overview of Thor. RVbusiness.com track's the RV Industry.

BREAKING NEWS
Thor Industries Reports 1Q RV Sales Down 50%
RV Business
Tuesday, November 4, 2008

Thor Industries Inc. said that sales for its fiscal first quarter ended Oct. 31 declined 42% with RV revenue falling 50%.

In its preliminary report, the Jackson Center, Ohio-based builder said sales for the quarter were $439.2 million, down from $763.7 million in the year-ago period. RV sales totaled $331.2 million compared with $664.2 million a year ago while bus sales increased to $108 million from $99.5 million.

Thor’s RV backlog on Oct. 31 was $124.5 million, down from $249.7 million the previous year.

The company reported that cash and investments on Oct. 31 were approximately $286 million versus $265 million the year prior. "Our strong balance sheet gives us a significant competitive advantage in these difficult times," said Wade F. B. Thompson, Thor chairman.

[TIMEMACHINE]

Originally Posted by Over59

Of course if the new guy lets people open their IRA's for home payments or purchases then watch out. Alot of folks could pack it in and hit the road. Pay off the morgage with the tax free money, sell the house, buy a land yacht and hit the road to see America while there is still something to see.

It would be tempting for sure!

[Silvertwinkie]

Originally Posted by Excella3287

In its preliminary report, the Jackson Center, Ohio-based builder said sales for the quarter were $439.2 million, down from $763.7 million in the year-ago period. RV sales totaled $331.2 million compared with $664.2 million a year ago while bus sales increased to $108 million from $99.5 million.

Not sure how they do their accounting, but if they do it like the automakers, they count units shipped to dealers as sold, even though they may be parked on a lot for however long, so if in fact they do similar accounting practices, I would not put a lot of stock into the fact that it's only a 50% drop.....could be far worse.

In the end I don't think that Airstream is going to close, if anything it will come out a leaner and meaner RV builder and it may remind some of the same folks that somewhat sloppily built my unit that quality is a journey not a destination and that hopefully some of the many issues we've all talked about here, with this time on their hands, might be able to address some of the shortcomings.

[TomW]

Originally Posted by Excella3287

... Thor Industries Inc. said that ... In its preliminary report, the Jackson Center, Ohio-based builder said ...

Is Thor really based in Airstream's home town?

Tom

[Silvertwinkie]

Originally Posted by TomW

Is Thor really based in Airstream's home town?

Tom

Yes. Airstream was, from what I understand Thor's first buy. They are housed next door or across the street... I forget which, but they are a stone's throw away from the service center.