RV parts supplier Lippert said that its net income during Q1 was $7.3 million, down 96% from a year ago. Net sales, meanwhile, were down 41 percent from the year-ago quarter, to $973.3 million.
In terms of supplying OEM products to RV makers, net sales in the quarter were $400.1 million, down 62% from the same quarter a year ago. The company noted a drop in North American wholesale shipments of 55% compared to the previous year.
One bright spot was that content per North American travel trailer and fifth wheel RVs for the 12 months ending March 31 increased 21% year-over-year to $5,881.
In the category of adjacent industries, Lippert had net sales of $358.1 million in the first quarter, up 1% year-over-year.
In the category of adjacent industries, Lippert had net sales of $358.1 million in the first quarter, up 1% year-over-year.
The company reported automotive aftermarket net sales of $215.1 million in the first quarter, down 13% percent year-over-year.
“Despite challenging wholesale and OEM environments, we delivered solid results in the first quarter of 2023, underscored by robust content growth and strong sequential margin expansion given current market conditions,” said Jason Lippert, LCI’s president and CEO. “Steadfast focus on our diversification strategy and continued operational improvements have positioned us to deliver sustained profitability, with performance in our adjacent industries and aftermarket businesses helping to partially offset the impact of lower RV OEM shipments. Despite wholesale RV declines, revenue and content per unit are substantially above pre-COVID levels. By leveraging our strong R&D capabilities, we are aggressively working to expand market share through product innovations to meet consumer demand for high-quality, sophisticated content.
“As we navigate through this down cycle, largely driven by recent overproduction within the industry, we remain confident in the underlying strength of the outdoor lifestyle and are seeing continued retail demand coming out of spring shows,” Lippert continued. “We are continuing to fortify our financial profile and have made significant progress towards our plan to reduce inventories by $300 million this year, supporting enhanced cash generation. With the efficiencies we’ve captured, combined with the continued performance of our diversified portfolio, we believe we are poised to continue our trajectory of strong performance and deliver substantial margin growth when RV OEM production recovers. Our strong cultural foundation, veteran operational leadership, and dedicated team members keep us on track in our efforts to create long-term value for all stakeholders throughout 2023.”
