A downturn in Tourism Holdings’ (THL) vehicle sales business in the United States is likely to have a material negative affect on its full year results, the company warns.
The campervan and tourism company said underlying net profit for the year ending in June could be less than last year’s $27.9 million, which excluded a $1.9m deferred tax benefit.
The company confirmed its US vehicle sales market had been weaker over the past year than in previous years, with competitive price pressures driving average first quarter vehicle sales margins down 40 percent on last year, while sales volumes held steady.
It said the vehicle rental business remained strong in all markers, with vehicle sales in New Zealand and Australia broadly line with expectations.
THL said it would not provide updated guidance at its annual meeting on Wednesday.
This article was originally published on RNZ and re-published with permission.