LCI Industries has reported full year and fourth quarter 2018 results, showing net sales increased 15 percent to $2.5 billion for the full year. Fourth quarter net sales decreased 2 percent year-over-year to $536.6 million.
“We delivered another record year with net sales reaching nearly $2.5 billion, a year-over-year increase of 15 percent. Our strategy to diversify our business through adjacent markets, the aftermarket, and internationally is clearly paying off. We saw strong growth in each of these markets, as well as a substantial increase in content per vehicle in our RV OEM segment supporting our outperformance of the industry,” said Jason Lippert, LCI Industries’ CEO. “While we are confident in our ability to further execute on our strategy going forward, we are cognizant of the challenges that our business and industry have faced over the last 12 months. As such, we have taken a number of actions to enhance our business in a short-term lower volume environment, including price increases to offset tariffs and higher commodity pricing and scaling back capital expenditures to boost return on investment and cash flows. As we look to 2019, we are confident we will continue to deliver solid financial and operating performance, as our entire team remains laser-focused on growth, penetrating new markets, and driving more value to our customers through unmatched innovation.”
For the year, content per travel trailer and fifth wheel increased $187 year-over-year, or 6 percent, to $3,450 for the 12 months ended Dec. 31, 2018. Content per motorhome increased $272 year-over-year, or 12 percent, to $2,491 for the 12 months ended Dec. 31, 2018.
The increase in year-over-year net sales reflects growth across the company’s segments, as well as the addition of acquisitions completed by the company over the 12 months ended Dec. 31, 2018.
The decrease in year-over-year net sales for the fourth quarter of 2018 reflects lower RV wholesale shipments as dealers normalize their inventory levels, offset by continued growth in the company’s adjacent industries OEM, aftermarket, and international markets. Net sales from acquisitions completed by the company over the 12 months ended Dec. 31, 2018, contributed $59.2 million in the fourth quarter of 2018.
January 2019 consolidated net sales are approximately $187 million, down 9 percent from January 2018. Sales continue to be impacted by reduced production rates by the OEMs in addition to poor weather that impacted multiple shipping days.