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LCI Industries (LCI) reported a 31% increase in sales during its first quarter, boosted by strong RV performance.

Consolidated net sales for the first quarter grew to $650 million from $498 million a year ago. Net income was $47.3 million, or $1.86 per diluted share, compared to net income of $43.1 million, or $1.71 per diluted share, in the first quarter of 2017.

Net sales from acquisitions completed by the company over the 12 months ended March 31, contributed $53 million in the first quarter. The organic growth rate was 20% for the first quarter and acquisitions provided the remainder of the 31% increase. Through continued focus on aftermarket channels for the company’s products, the LCI increased net sales to the aftermarket in the first quarter of 2018 by 39% to $50 million.
“We experienced strong sales growth in our engineered products for leisure and mobile transportation as reflected in our record $650 million sales for the first quarter,” said LCI CEO Jason Lippert. “We also continue to see strong growth in our aftermarket and adjacent OEM market sales, aided by recent acquisitions. Adjacent OEM market sales grew to $142 million for the quarter, up 50% from the first quarter of 2017. Aftermarket sales rose to $50 million in the first quarter of 2018, up 39 percent from the first quarter of 2017.
“We remain optimistic, as April 2018 consolidated net sales are approximately $245 million, 46% higher than April 2017,” he continued. “Our continuing growth story is a testament to the focus of our more than 11,000 team members.”
The company’s content per travel trailer and fifth-wheel RV for the 12 months ended March 31 increased $259 to $3,317, compared to $3,058 in the previous year. This is the largest increase in five years for travel trailer and fifth-wheel RV content. LCI’s content per motorhome RV for the 12 months ended March 31, 2018, increased $306 to $2,328, compared to the 12 months ended March 31, 2017, of $2,022. The content increases are a result of organic growth, including new product introductions, as well as acquisitions.

“Our content per travel trailer and fifth-wheel increased 8% year-over-year, the largest annual increase since 2012, and our content per motorhome increased 15% year-over-year, representing our fourth straight year of double-digit content growth for motorhomes,” said Scott Mereness, LCI’s President. “We continue to invest in lean manufacturing and automation to improve the efficiency of our operations and meet industry growth demands while managing one of the most volatile commodities environments in recent history due to the new steel and aluminum tariffs. Although operating margin improved from the last two quarters of 2017, raw materials inflation, at least partially caused by the new tariffs, more than offset the margin improvement from our operational and pricing initiatives. Additional price increases will take effect in the coming months and we continue to work with our customers to implement our cost-based pricing strategies.”

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