Drew Industries Inc., a supplier to the RV and manufactured home industries, reports that its RV-related sales and operating earnings grew in 2002 to the extent that the RV industry accounts for more than half of its business.
The parent of RV industry suppliers Lippert Components and Kinro reported a net loss of $14.6 million for 2002 because it took a $30.2 million noncash charge against earnings resulting from its decision to change accounting rules related to the amortization of goodwill.
Excluding the impact of the accounting rules change, Drew’s operating earnings from continuing operations increased 60% last year to $15.8 million.
The company’s total sales increased 28% in 2002 to a record $325 million.
During the three months ended Dec. 31, Drew’s total sales increased 27% to $78 million and its operating profit from continuing operations climbed 18% higher to $2.6 million. Its RV-related sales increased 88% in the fourth quarter to $45.1 million and its RV-related operating profit increased 117% in the fourth quarter to $3.5 million.
“Continued expansion of our RV products customer base coupled with increasing sales of (towable) RV chassis, slide-out systems, windows and doors accounted for the bulk of our sales increase,” said Leigh Abrams, president and CEO. “In addition, our aggressive geographic expansion through new factories (including the opening of a new towable RV chassis plant in Portland, Ore., last year), as well as new customers and product line enhancements, should aid our growth in the future.”
Meanwhile, Abrams revealed that Drew is involved in patent litigation related to its towable RV slide-out systems and he said the firm “is in the early stages of discovery and the company is vigorously defending against the claims.”