STOCKHOLM (BRAIN) — Thule Group sales dropped another 11.6% in the second quarter as the COVID-19 pandemic continued to hurt the sport and cargo carrier manufacturer.
Net sales for the quarter were SEK 2,043 million ($228.6 million) compared to SEK 2,311 ($258.5 million) year-over-year. Adjusted for exchange rate fluctuations, sales dipped 12.3% for the quarter ending in June.
In the first quarter ending in April, Thule reported a sales drop of 4.9% with the pandemic either closing or limiting European and North American dealers. CEO and President Magnus Welander expressed optimism despite the numbers.
"The second quarter was exceptional in many respects for Thule Group, primarily due to the massive lockdowns in our core markets in Europe and North America due to the corona pandemic," he said. "I am therefore very satisfied that, despite a decline of 11.6% in sales, we were again able to demonstrate our ability to manage major production fluctuations while maintaining high margins."
Operating income for the second quarter was SEK 430 million ($48 million), a 23% drop year-over-year. Net income was SEK 312 million ($34.9 million), down 25.6%. Earnings per share were SEK 3.02 ($0.34) compared to SEK 4.06 ($0.45) a year ago.
Sales in the Americas were down 12.2% in the second quarter, but showed signs of rebounding in the second half of the quarter, according to Thule.
Thule said furloughs have been halted in response to COVID-19 and it has received government grants of SEK 14 million ($1.6 million).
Thule's corporate headquarters is in Stockholm. Its stock is traded on OTCMKTS under the THULE symbol. Thule stock quote at Marketwatch.com.
