Drew Industries Inc., parent of supplier firms Kinro and Lippert Components, reports its RV segment outperformed the RV industry as a whole during the first quarter.
Drew, an American Stock Exchange-listed company, reports its RV industry-related sales revenue increased 45% during the January-through-March period, while shipments of travel trailers and fifth-wheels, Drew’s primary RV market, increased 20% during the first two months of this year, the most current data available.
Meanwhile, Drew’s RV-related operating profit increased 26% during the three months ended March 31, to $4.5 million, compared with $3.6 million earned from RV-related operations during the same portion of 2002.
During the first quarter, Drew’s Lippert Components subsidiary incurred around $500,000 in expenses related to the settlement of the slideout systems patent infringement lawsuit filed by Actuant Corp., maker of Power Gear slideouts. Without the settlement-related expenses, Drew’s RV-related operating earnings during the first quarter would have been up by 40% over the year-earlier period, the White Plains, N.Y.-based company reported.
Drew settled the lawsuit by accepting a licensing agreement.
“Our RV segment has achieved extraordinary growth over the last 15 months,” said Leigh Abrams, Drew’s president and CEO. “All product lines in Drew’s RV segment have exceeded industry growth rates.
“While we know the current level of industry growth cannot continue indefinitely, the long-term demographic trends for the RV industry are excellent, and we are confident in our ability to continue to outperform the industry throughout 2003,” Abrams added.