Drew Industries Inc., parent company of Lippert Components and a supplier of parts for RVs and manufactured homes, today reported net income of $12 million, or 49 cents per diluted share, for the fourth quarter ended Dec. 31.
The company announced Tuesday in a news release that consolidated net sales in the fourth quarter of 2014 increased to a fourth quarter record of $289 million, 29 percent higher than the 2013 fourth quarter.
This growth in net sales primarily resulted from a 32 percent increase in net sales of Drew’s RV Segment, which accounted for 91 percent of consolidated net sales in the 2014 fourth quarter.
RV Segment sales growth was largely due to a 20 percent increase in industry-wide wholesale shipments of travel trailer and fifth wheel RVs, Drew’s primary RV market.
The four acquisitions completed by the company in 2014 also added $15 million in net sales in the fourth quarter of 2014, all of which related to Drew’s RV Segment.
The company also increased sales to adjacent industries and the aftermarket.
The company’s content per travel trailer and fifth wheel RV for the 12 months ended Dec. 31 increased by $109, or 4 percent, to $2,825, compared to content per travel trailer and fifth wheel RV for the previous 12-month period of $2,716.
Content per motorhome reached $1,544 for the 2014 year, and $1,828 in the fourth quarter, reflecting market share gains through organic growth and acquisitions completed in 2014.
“Our net sales in 2014 were strong, demonstrating the effectiveness of our long-term strategy,” Drew CEO Jason Lippert said. “In 2014, the RV industry experienced a solid year as the RV lifestyle continued to gain in popularity, consumer confidence improved, and retail demand for RVs in 2014 grew 8 percent from 2013. In particular, retail demand for RVs in the fourth quarter of 2014 accelerated, increasing 15 percent as compared to the fourth quarter of 2013. In response to the increase in retail demand for 2014, manufacturers produced more RVs in 2014 than any year since 2006.”
In January 2015, Drew’s consolidated net sales reached $115 million, 41 percent higher than January 2014, a record for the month of January. Excluding the impact of acquisitions, the company’s consolidated net sales for January 2015 were up 34 percent. In January 2014, severe winter weather conditions had a negative impact on industry-wide production of RVs, as well as on shipments of the company’s products, which did not recur to the same magnitude in January 2015.
“The strong RV industry fundamentals, aided by demographic tailwinds, are positive signs for 2015,” Lippert said. “Retail RV shows for the first part of 2015 have been strong, with reports of higher traffic and increased sales activity, and industry analysts continue to report that dealer inventory is in line with anticipated retail demand.
“Our RV OEM customers believe there is additional retail growth coming in 2015 and after, and are adding significant capacity to meet the anticipated demand. We believe we are well positioned to meet the increased demands expected for 2015 and the beginning of 2016.”