Drew Reports Records 3Q Results, Expansion Continues
RV and manufactured housing industry supplier Drew Industries Inc., parent of Kinro and Lippert Components, reported record third-quarter sales and earnings.
The supplier of towable RV chassis and other components reported its net earnings increased 57% to $4.7 million and its sales climbed 23% higher in the three months ended Sept. 30 to $92.9 million.
However, because of a $30.1 million charge taken earlier this year to reflect a change in accounting methods, Drew, an American Stock Exchange-listed company, reported a net loss of $17.1 million for the first nine months of this year. That compares with net earnings of $6.8 million in the same portion of 2001.
The company’s sales revenue increased 25% in the first nine months of this year to $256.5 million.
Drew’s third-quarter operating earnings on sales to RV industry customers increased 60% to $5 million, making it the first three-month period in the company’s history when its RV industry-related earnings exceeded its manufactured housing industry-related profits.
Drew’s sales to RV industry customers amounted to $47.1 million in the July-through-September period, which was equivalent to 51% of its total sales.
“Continued expansion of our RV products customer base, coupled with increasing sales of RV chassis, slideout systems, windows and doors accounted for the bulk of our sales increase,” said Leigh Abrams, president and CEO of the White Plains, N.Y. firm.
Drew acquired the business and certain assets of Elkhart, Ind.-based towable RV chassis supplier Quality Frames Inc. in the third quarter. Production operations for Quality, which had around $7 million in annual sales, were moved into nearby Drew facilities.
The company also opened a new towable RV chassis assembly factory in a leased building in Portland, Ore., to serve West Coast customers. Drew now has five plants along the West Coast, including three that were opened in the last three years.