ELKHART — Drew Industries Inc. a supplier of components for recreational vehicles and manufactured homes, reported Friday sales and income gains for its third quarter.
The company said net income was $14.8 million, or $0.62 per diluted share, for the third quarter ended Sept. 30. The amount was an increase of 52 percent compared to net income of $9.8 million, or $0.43 per diluted share, in the third quarter of 2012.
Net sales in the third quarter increased to $251 million, 11 percent higher than the 2012 third quarter. According to the company, the sales growth was primarily the result of a 12 percent sales increase by Drew’s RV segment, which accounted for 87 percent of consolidated net sales in the quarter. RV segment sales growth was primarily due to an 8 percent increase in industry-wide wholesale shipments of travel trailer and fifth-wheel RVs, Drew’s primary RV market. In addition, sales of recently introduced components for towable and motorhome RVs increased, as did sales to adjacent industries and the aftermarket.
The company said its content per motorhome RV and travel trailer and fifth-wheel RV for the 12 months ended in September increased 4 percent to $1,137 per unit and 2 percent to $2,719 per unit, respectively, from the same period a year earlier as a result of recent product introductions, product improvements and market share gains.
“Our company-wide focus on our customers as our first priority has enabled us to gain market share and increase sales,” said Jason Lippert, Drew’s chief executive officer. “In addition, we have been successful by staying ahead of the market through innovation. We continue to invest in customer service and research and development resources to maintain our position as a leading supplier to the industries we serve.”
Drew’s growth continued in October, according to the company. Net sales reached approximately $95 million in October, nearly 12 percent higher than in October 2012. Drew attributed the increase to the continued growth in the company’s RV segment. Drew estimates that industry-wide wholesale shipments of travel trailer and fifth-wheel RVs increased 8 percent to 10 percent in October 2013 compared to October 2012. Drew also estimates that October 2013 industry-wide production of manufactured homes increased approximately 5 percent compared to October 2012.