LCI Industries (“LCI”), through its subsidiary, Lippert Components, Inc., the components supplier to OEMs in the RV and other markets around the world, achieved record sales in 2018 of nearly $2.5 billion, an increase of 15 percent.
LCI supplies engineered components for the leading OEMs in the recreation and industrial product markets, and the related aftermarkets of those industries.
Jason Lippert, LCI Industries’ Chief Executive Officer, said: “We delivered another record year with net sales reaching nearly $2.5 billion, a year-over-year increase of 15 percent. Our strategy to diversify our business through adjacent markets, the aftermarket, and internationally is clearly paying off. 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.”
“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. 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. As we look to 2019, we are confident we will continue to deliver solid financial and operating performance, as our entire team remains laser-focused on growth, penetrating new markets, and driving more value to our customers through unmatched innovation,” continued Jason Lippert.
Consolidated net sales for the full year 2018 were $2,475.8 million, an increase of 15 percent over the prior year net sales of $2,147.8 million. Net income for the full year 2018 was $148.6 million, compared to net income of $132.9 million in 2017.
The increase in year-over-year net sales reflects growth across the Company’s segments, as well as the addition of acquisitions completed by the Company over the twelve months ended December 31, 2018. Net sales from acquisitions completed by the Company over the twelve months ended December 31, 2018, contributed $231.4 million in 2018.
Consolidated net sales for the fourth quarter of 2018 were $536.6 million, a decline of two percent from 2017 fourth quarter net sales of $547.1 million.
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 twelve months ended December 31, 2018, contributed $59.2 million in the fourth quarter of 2018.
The Company’s content per travel trailer and fifth-wheel RV for the twelve months ended December 31, 2018, increased $187 to $3,450, compared to the twelve months ended December 31, 2017, of $3,263. The Company’s content per motorhome RV for the twelve months ended December 31, 2018, increased $272 to $2,491, compared to the twelve months ended December 31, 2017, of $2,219. The content increases are a result of organic growth, including new product introductions, as well as acquisitions.