Elkhart, Ind.-based LCI Industries, which oversees Lippert Components, a supplier of a broad array of highly engineered components for the leading OEMs in the recreation and transportation product markets, and the related aftermarkets of those industries, said its net income in the second quarter was $13.2 million, a 72 percent drop from the same period last year.
The company reported sales of $526 million in the second quarter, a decrease of 16 percent year-over-year.
The decrease in year-over-year net sales for the second quarter was primarily driven by the impact of customer shutdowns in response to the COVID-19 pandemic, partially offset by acquisitions and organic growth across the Company’s aftermarket segment and international markets.
The company’s content per travel trailer and fifth-wheel RV, adjusted to remove Furrion sales from prior periods, for the twelve months ended June 30, 2020, increased $141 to $3,371, compared to $3,230 for the twelve months ended June 30, 2019. The content increase in towables was a result of organic growth, including new product introductions, partially offset by price reductions.
“Our teams showed tremendous execution during the second quarter. Amidst a very difficult operating environment, we captured accelerated demand for RV and marine products, as well as strength in the aftermarket,” said Jason Lippert, the company’s president and CEO. “In a span of less than two months, we were able to go from a near total shutdown in April to a record sales month in June. This could not have happened without the focus and speed to react by our leaders and team members. Despite top-line impact caused by production shutdowns in response to the COVID pandemic, we made substantial progress on driving operational efficiencies in an effort to mitigate any long-term impact to the business as a result of the pandemic, highlighting the effectiveness of the cost management initiatives we put into place at the beginning of the quarter.
“We expect heightened RV demand to continue, signaling a paradigm shift for the industry as consumers are increasingly drawn into the RV lifestyle as a safe way to spend time with family in the outdoors. As a leader in innovation, LCI has a significant opportunity to further enhance its competitive position in the space.
“Looking to the second half of 2020, we remain focused on executing on our diversification strategy, while at the same time, preparing to meet elevated RV demand. We stand committed to driving innovation across the business to further create value for our shareholders. In addition, I would like to thank our entire team, and in particular our operations and manufacturing groups, for juggling the demands of an extremely volatile operating environment. To deliver strong results amidst these challenges was an amazing accomplishment, and a testament to the capabilities of LCI’s robust leadership.”
