Drew Industries Inc. posted a 43% increase in net sales for the company’s first quarter, ended March 31, while net income dipped slightly due, in part, to charges stemming from an adverse verdict in a workplace injury lawsuit.
The White Plains. N.Y.-based firm, parent to recreational vehicle and manufactured housing suppliers Lippert Components Inc. and Kinro Inc., reported net income for the quarter was $5.8 million compared to $6 million the previous year.
Net sales for the three-month period reached $155 million from $108 million in 2004. Drew said that sales in both its RV and MH products segments reached first quarter records.
“We are extremely pleased that our 2005 first quarter operating profit margins improved from the fourth quarter of 2004, and that operating profit increased from the first quarter of 2004 in both the RV and MH segments, excluding the charges related to the legal proceedings,” said Leigh J. Abrams, Drew’s president and CEO. “Operating management did an outstanding job of managing their businesses through a period of extraordinary increases in our key raw materials.”
Throughout 2004, Drew experienced unprecedented increases in the cost of certain of its raw materials, particularly steel. The company said that based on current steel prices, Drew has now passed on to customers substantially all of its raw material cost increases, although largely without any mark-up.