Lippert reports increase in net sales in fiscal year 2018

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LCI Industries had net sales of $2.5 billion for fiscal year 2018, a 15 percent increase over the year prior, and net income of $148.6 million, an increase of 12 percent year-over-year.

The company is increasing prices to help offset tariffs and higher commodity prices and is scaling back expenditures to increase cash flow.

“Our strategy to diversify our business through adjacent markets, the aftermarket, and internationally is clearly paying off,” said LCI CEO Jason Lippert in a statement. 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.”

The company reported GAAP diluted earnings-per-share of $5.83, including a one-time non-cash charge related to U.S. tax reform.

Adjacent industries OEM sales grew to $614.6 million for the year, up 49 percent year-over-year.

For the fourth quarter, LCI had net sales of $536.6 million, a 2 percent decrease year-over-year.

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 fiscal year contributed $59.2 million in the fourth quarter.

“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 twelve months,” said Lippert. “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.”