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LCI Hits Q2 Record of $547 Million

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LCI Industries reported consolidated net sales in the second quarter of $547 million, 24 percent higher than the 2016 second quarter net sales of $441 million. Net income was $40.1 million for the second quarter ended June 30, compared to net income of $37.6 million for the second quarter ended June 30, 2016.

The increase in year-over-year net sales reflects industry-wide growth in wholesale shipments of towable and motorized RVs by OEMs, which increased 17 percent and 11 percent, respectively, in the second quarter of 2017, enhanced by acquisitions completed by the supplier over the twelve months ended June 30, which added $17 million in net sales.

Organic growth accounted for 20 of the 24 percent growth in consolidated net sales for the second quarter and growth from acquisitions provided the remainder. Through continued focus on aftermarket channels for the supplier’s products, the company increased net sales to the aftermarket in the second quarter of 2017 by 32 percent to $45 million.

“The RV industry growth trend in 2017 remains strong as second quarter wholesale RV shipments were up 15 percent,” said Jason Lippert, LCI’s CEO. “RV sales momentum has continued as the industry attracts a new generation of RV enthusiasts, and orders appear to be strong going into the third quarter as dealer sentiment remains bullish and OEMs continue to add capacity to meet demand. Additionally, we continue to see strong growth in our aftermarket sales.”

The health of the RV industry is determined by retail demand, which is up 11 percent through May, as reported by Statistical Surveys, and will likely be revised upward in future months as various states report. Based on the retail sales strength experienced through 2016 and midway through 2017, as well as sales order backlogs reported by RV OEMs at record levels, the current outlook from several RV OEMs and their dealer networks remains very positive.

Additionally, the RVIA’s current forecast of wholesale unit shipments of approximately 472,000 units has been revised upward from its original fall forecast of 411,000 for the full year 2017. The RVIA’s forecast for 2018 is estimated to increase an additional three percent to approximately 487,000.

In July 2017, LCI’s consolidated net sales reached approximately $150 million, 27 percent higher than July 2016.

“As the industry prepares to meet the anticipated demand of the 2017 summer selling season, I am encouraged by July sales following up on a strong second quarter, and pleased to see aftermarket sales up over 35 percent in July,” said Lippert.

“Our operating profit in the second quarter of 2017 improved to $63.0 million, compared to $59.4 million in the second quarter of 2016,” said Scott Mereness, LCI’s president. “Strong industry growth and accretive acquisitions completed over the last year have contributed to profit growth for the quarter.”

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