Accounting & Tax

Manufacturer In Dutch over Accounting

Will restate due to issues with inventory, accounts receivable, accounts payable, and cost of goods sold at one of its subsidiaries.
Stephen TaubApril 9, 2007

Thor Industries — which manufactures recreational vehicles and buses under numerous brand names, including Airstream — announced it will restate its results due to accounting issues at one of its subsidiaries.

After an internal investigation into the company’s Dutchmen Manufacturing subsidiary, Thor’s audit committee determined that a restatement was required for the three fiscal years ended 2006 and the quarter ended October 31, 2006.

According to Thor, the issues primarily involve inventory, accounts receivable, accounts payable, and cost of goods sold. The revisions will cut net income, mostly in fiscal 2006, by about $16 million, just as the company warned in January.

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The company cautioned that the audit committee’s investigation is continuing and that the cumulative effect and periods affected could change. Thor added that it informed the Securities and Exchange Commission of its investigation and has been responding to SEC staff requests for additional information.