Elkhart, Ind.-based LCI Industries today (Aug. 2) reported record revenue during its second quarter, growing 25% to $684 million compared with $547 million in the prior year period.
Net income in the second quarter of 2018 was $47.2 million, or $1.86 per diluted share, compared to net income of $40.1 million, or $1.59 per diluted share, in the second quarter of 2017.
“We continued to see strong sales growth in our engineered components for the recreation and industrial products as reflected in our record $684 million sales for the second quarter,” said LCI CEO Jason Lippert. “Aftermarket and adjacent OEM market sales both grew over 50% for the quarter, aided by recent acquisitions. Adjacent OEM market sales grew to $168 million for the quarter, up 54% from the second quarter of 2017. Aftermarket sales rose to $68 million in the second quarter of 2018, up 51% from the second quarter of 2017.
Net sales from acquisitions completed by the company over the 12 months ended June 30 contributed $64 million in the second quarter of 2018. The organic growth rate was 14% for the second quarter and acquisitions provided the remainder of the 25% increase. Through continued focus on aftermarket channels for the company’s products, Lippert increased net sales to the aftermarket in the second quarter of 2018 by 51% to $68 million.
Lippert’s content per travel trailer and fifth-wheel RV for the 12 months ended June 30, 2018, increased $308 to $3,412, compared to the 12 months ended June 30, 2017, of $3,104. This is the largest increase in five years for travel trailer and fifth-wheel RV content. The company’s content per motorhome RV during the 12-month period increased $366 to $2,438, compared to $2,072 in the year ago period. The content increases are a result of organic growth, including new product introductions, as well as acquisitions.
Adjacent OEM market sales grew to $168 million for the quarter, up 54% from the second quarter of 2017. Aftermarket sales rose to $68 million in the second quarter of 2018, up 51 percent from the second quarter of 2017.
Scott Mereness, LCI president, noted, “We continue to assess our operating efficiency and look for opportunities to invest in lean manufacturing and automation while meeting industry growth demands during one of the most volatile commodities environments in recent history due to the new steel and aluminum tariffs. Although operating margin improved in the second quarter of 2018 from the first quarter of 2018, raw materials inflation, due to the worldwide rising commodity prices that have occurred primarily from tariffs and tariff speculation, more than offset the margin improvement from our operational and pricing initiatives.”