A 14 percent increase in net sales to the RV industry lifted Lippert parent company Drew Industries in the second quarter this year.
RV businesses account for 92 percent of the company’s net sales in 2015, which led to net income of $20.9 million for the second quarter ended June 30, compared to net income of $18.6 million for the second quarter 2014.
The earnings are on-par with 2014 second quarter earnings, when Drew sold its aluminum extrusion assets and recorded an after-tax charge of $1.2 million. Minus the charge, income for the second quarter 2014 would have been $19.8 million.
Consolidated net sales in the second quarter of 2015 increased to $362 million, 13 percent higher than the 2014 second quarter. This growth in consolidated net sales primarily resulted from a 14 percent increase in net sales of Drew’s RV segment for the 2015 second quarter compared to the 2014 second quarter, despite an acceleration in the wholesale production of RVs in late 2014 and early 2015.
The acquisitions completed by the company in 2014 and the first half of 2015 added $21 million in net sales in the second quarter of 2015, all of which related to Drew’s RV segment.
RV segment net sales growth in the 2015 second quarter also was due to a 4 percent increase in industry-wide wholesale shipments of travel trailer and fifth-wheel RVs, Drew’s primary RV market, as well as organic growth in sales to adjacent industries and the aftermarket.
“With the strong underlying demand for our products in the second quarter of 2015, we achieved record quarterly net sales for the second time this year,” said Jason Lippert, Drew’s CEO. “The industries we serve continue to grow, which, when coupled with our recent acquisitions, new products and market share gains, have led to the significant increase in our net sales for the second quarter of 2015.”