Lippert Reports Q2 Results

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Lippert Components parent company LCI Components reported a 16 percent drop in consolidated second-quarter net sales to $525.8 million. The company said in a statement that it experienced a drop-off due to the pandemic, but sales rebounded in June and July.

“Our teams showed tremendous execution during the second quarter,” LCI Industries president and CEO Jason Lippert said in the statement. “Amidst a very difficult operating environment, we captured accelerated demand for RV and marine products, as well as strength in the aftermarket. In a span of less than two months, we were able to go from a near total shutdown in April to a record sales month in June.”

Aftermarket sales increased to $158 million in the second quarter, an increase of 109 percent year-over-year, and international sales grew to $44.1 million, a 40 percent year-over-year increase.

RV OEM net sales in North America were less than 52 percent of total net sales for the 12 months ended June 30. Content per travel trailer and fifth-wheel RV increased $141 year-over-year, or 4 percent, to $3,371.

Adjacent industries OEM sales declined to $130.6 million in the quarter, a decrease of 23 percent year-over-year.

“We made substantial progress on driving operational efficiencies in an effort to mitigate any long-term impact to the business as a result of the pandemic, highlighting the effectiveness of the cost-management initiatives we put into place at the beginning of the quarter,” Lippert said.

July consolidated net sales were approximately $280 million, up 53 percent from July 2019 as a significant increase in RV production continued, with many manufacturers electing to produce during the typical holiday shutdown, according to the company.

“We expect heightened RV demand to continue, signaling a paradigm shift for the industry as consumers are increasingly drawn into the RV lifestyle as a safe way to spend time with family in the outdoors,” Lippert said. “Looking to the second half of 2020, we remain focused on executing on our diversification strategy, while at the same time preparing to meet elevated RV demand.”