15 February 2024
15 February 2024, Comments Comments Off on Lippert full-year results describe 2023 as a ‘challenging environment’ as January 2024 results increase 13%
Lippert full-year results describe 2023 as a 'challenging environment' as January 2024 results increase 13%

Full year (2023) results for LCI Industries (“Lippert”) show sales of $3.8 billion and net income of $64 million.

As a result of a year for the RV industry that Lippert describes as ‘a challenging environment’, its net sales were down 27 percent and net income down 84 percent compared to the previous year.

Lippert says that January 2024 sales are 13 percent ahead of the same month in 2023 primarily due to an approximate 57% increase in North American RV production, and partially offset by an approximate 44% decline in marine sales compared to January 2023.

The decrease in year-over-year net sales was primarily driven by a nearly 39% decrease in North American RV wholesale shipments, decreased selling prices which are indexed to select commodities, and lower North American marine production levels, partially offset by net sales from recent acquisitions. Net sales from acquisitions completed in 2022 and 2023 contributed approximately $73.6 million in 2023. The company delivered $527 million of cash from operating activities in 2023.

Commenting on these results, Jason Lippert, LCI Industries’ President and Chief Executive Officer said: “Throughout the year, our consistent execution on diversification priorities and steadfast commitment to operational discipline has supported our performance despite continued softness in the RV and marine markets. Remarkable strength in our Aftermarket business, where we continued to see robust performance, coupled with solid results and leadership in our other diversified businesses, significantly contributed to our profitability as we navigate a challenging industry environment. Our focus on operational improvement and investments in automation leave us well-positioned to drive profitable growth when production starts to normalize in 2024,”

“Further, through our world-class R&D capabilities and culture of innovation, we will continue introducing sophisticated new products. Our 2023 product launches introduced some great additions to our portfolio, such as independent suspension axles, anti-lock braking systems, our new 4000 series windows with integrated blinds, as well as our new leveling systems for towables and motor homes. These new products differentiate us from our competition and will add solid organic content growth and market share expansion. Demonstrating this strength, we have nearly $200 million in net new business commitments in 2024,” continued Mr. Lippert. “We are entering the new year with a solid balance sheet, reinforced by recent working capital improvements and a focus on cash generation. We plan to continue to invest strategically and are confident in the mid- to long-term profitable growth of our business.”

Ryan Smith, LCI Industries’ Group President – North America said: “January 2024 sales outpaced January 2023 levels by 13% as we started to see business increase as dealers begin to replenish inventories. February orders are also pacing ahead of prior year, reflecting the positive dealer and consumer sentiment from the RV shows. I’d like to thank all of our team members for their unwavering commitment to driving our business forward as we work to generate value for our customers and shareholders.”

LCI Industries, through its wholly-owned subsidiary, Lippert, supplies, domestically and internationally, a broad array of highly engineered components for the leading OEMs in the recreation and transportation markets, consisting primarily of recreational vehicles and adjacent industries, including boats; buses; trailers used to haul boats, livestock, equipment, and other cargo; trucks; trains; manufactured homes; and modular housing.

The Company also supplies engineered components to the related aftermarkets of these industries, primarily by selling to retail dealers, wholesale distributors, and service centers, as well as direct to retail customers via the Internet.

Lippert’s products include steel chassis and related components; axles and suspension solutions; slide-out mechanisms and solutions; thermoformed bath, kitchen, and other products; vinyl, aluminum, and frameless windows; manual, electric, and hydraulic stabilizer and leveling systems; entry, luggage, patio, and ramp doors; furniture and mattresses; electric and manual entry steps; awnings and awning accessories; towing products; truck accessories; electronic components; appliances; air conditioners; televisions and sound systems; tankless water heaters; and other accessories.