Supplier firm Drew Industries Inc. reports its RV business was the source of its improved second-quarter sales and earnings.
The American Stock Exchange-listed company, which also supplies the manufactured housing industry, reports its second-quarter total sales increased 4% to $89.4 million and its net income improved by 12% to $5.3 million.
Drew’s RV industry-related business now accounts for 62% of the company’s total sales. Its RV-related sales increased 26% during the three months ended June 30 to $55.5 million.
Supplying frames, through its Lippert Components subsidiary, to the manufacturers of travel trailers and fifth-wheels, is a big portion of Drew’s RV-related business, although its slideout mechanism and power units business grew by 81% in the second quarter.
Operating profits at Drew’s RV segment also increased 70% in the April-through-June period to $6.9 million, and its operating margin improved to 12.4% of sales, from 9.2% a year earlier. Improved operating results at factories in Goshen and Middlebury, Ind., and Rialto, Calif., were significant contributors to the improved profitability, according to the company.
During the first half of this year, Drew’s total sales increased 8% to $170.2 million and its net income totaled $8.6 million, which compares with a $21.8 million net loss incurred in the first half of 2002. That net loss, however, occurred because the company took a $30.1 million noncash charge against earnings to account for impaired goodwill. Excluding the goodwill impairment charge, Drew’s operating earnings for the first half of this year basically equaled its operating income during the first half of 2002.