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Higher Demand, Lower Materials Cost Helps Lift Drew Earnings in 2015

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Drew

Higher RV sales and lower aluminum and steel prices helped Drew Industries improve its margins and overall profit during 2015 the company reported Thursday.

“The materials portion of Q4 was a significant portion of the improvement, but we had other things like product mix, and fifth wheels were up; anytime fifth wheels are up in a quarter our margins of profitability are better because there’s just more content in the fifth wheels,” Drew CEO Jason Lippert said during a conference call with investors Thursday (Feb. 11).

Net sales for the year increased to $1.4 billion, 18 percent higher than 2014. Drew’s net income increased to $74.3 million, up from net income of $62.3 million in 2014.

The company received a boost late in the year, as sales for the fourth quarter increased to $334 million, 16 percent higher than the 2014 fourth quarter.

Acquisitions completed by the company in 2015, as well as the Furrion distribution and supply agreement, added $52 million in net sales in 2015.

Lippert was hopeful that new product growth in 2015 could continue the positive trend.

“There’s some significant content coming available for us,” Lippert said, noting that new products from Furrion make up the bulk of the company’s anticipated new product line for the upcoming year.

Drew’s content per travel trailer and fifth wheel RV for 2015 increased $171 to $2,987, compared to content per travel trailer and fifth wheel of $2,816 in 2014.

The company’s content per motorhome increased by $208, to $1,810, compared to content per motorhome of $1,602 in 2014.

To read the full release, click here, or to listen to the archived conference call, click here.

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