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Drew Industries Inc., a component supplier to the recreational vehicle and manufactured housing industries, today (Feb. 15) announced record earnings and revenues for the full year ended Dec. 31.
Shares of Drew stock closed today’s trading up $3.05 at $39.00.
The White Plains, N.Y.-based company also restated that fourth quarter profits were impacted by raw material costs and an after-tax charge stemming from an adverse verdict in a workplace injury lawsuit.
“We are extremely pleased with our 2004 results, particularly in view of the many difficulties that we encountered, including the effect of unprecedented steel price increases and the adverse jury verdict,” said Leigh J. Abrams, president and CEO for Drew, parent to industry suppliers Kinro Inc., Arlington, Texas and Goshen, Ind.-based Lippert Components.
For the year, profits rose 29% to $25.1 million compared with $19.4 in 2003 while net sales grew 50% to a record $531 million. Drew reported it was the third straight year the company had generated record net sales and income.
Net income in the fourth quarter was $3.5 million compared to $4.2 million in the same period of 2003. Revenues for the three-month period were $132 million compared to $87 million in the previous year.
Drew’s RV segment, which includes newly acquired Zieman Manufacturing Co., Whittier, Calif., showed a 58% increase in sales to a record $348 million in 2004, including 55% growth in revenues for the fourth quarter.
Abrams said that Drew had initiated sales price increases to offset materials costs, particularly steel, that had “doubled and tripled” in the past year.
He added, “The good news seems to be that steel prices have now stabilized, albeit at very high levels. However, the higher steel costs mean that we must utilize that much more capital to carry our steel inventory.”
The company also intends to move for a new trial or appeal the verdict in the workplace injury case involving a Lippert Components’ employee in California.