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Supplier Drew Sees 52% Jump in 3Q Net Income

November 1, 2013 by · Leave a Comment 

Drew Industries Inc., parent to RV and manufactured housing suppliers Lippert Components Inc. and Kinro Inc., today (Nov. 1) reported a 52% increase in net income for its third quarter, ended Sept. 30, boosted by improved margins and strong performance in the company’s RV segment.

Net income during the period totaled $14.8 million, or 62 cents per diluted share, compared to net income of $9.8 million, or 43 cents per diluted share, in the third quarter of 2012.

Net sales grew to $251 million, 11% higher than the 2012 third quarter. The sales growth was primarily the result of a 12% sales increase by Drew’s RV segment, which accounted for 87% of consolidated net sales this quarter. Drew said that sales of recently introduced components for towable and motorhome RVs increased, as did sales to adjacent industries and the aftermarket.

“Our companywide focus on our customers as our first priority has enabled us to gain market share and increase sales,” said CEO Jason Lippert. “In addition, we have been successful by staying ahead of the market through innovation. We continue to invest in customer service and research and development resources to maintain our position as a leading supplier to the industries we serve.”

He added, “Our operating profit margins in the third quarter of 2013 were 9.1% compared to 6.6% in the third quarter of 2012. The 2013 third quarter operating profit margins were consistent with the second quarter of 2013 largely due to management’s recently implemented efficiency improvements gaining momentum, partially offset by the anticipated impact of spreading fixed costs over a seasonally smaller sales base. Many of the production improvements resulted in larger than anticipated efficiency gains, including the benefits realized from our new glass tempering equipment.”

The company’s content per motorhome and towable RV for the twelve months ended September 2013 increased 4% to $1,137 per unit and 2% to $2,719 per unit, respectively, from the year-earlier period as a result of recent product introductions, product improvements and market share gains. The change in content per RV is a measure of the change in Drew’s overall market share across its existing product lines.

“Our labor as a percent of net sales in the third quarter of 2013 was consistent with the second quarter of 2013, despite the seasonal decline in net sales,” said President Scott Mereness. “The labor efficiencies we have realized over the past several quarters, while introducing new products and adjusting to industry and market share growth, have been significant. These improvements in labor during the first three quarters of 2013 were also primarily due to completed production efficiency improvement projects, as well as declines in the costs of implementing facility consolidations and realignments. We will continue to implement additional efficiency improvements as we identify them.”

In October 2013, Drew’s consolidated net sales reached approximately $95 million – 12% higher than in October 2012 – as a result of continued solid growth in the company’s RV segment.

“Our consolidated net sales for the trailing twelve months ended October 31 exceeded $1 billion,” added Mereness. “Achieving this milestone is quite an accomplishment for the company. In anticipation of future growth, we continue to expand and improve production capacity, investing in personnel and facilities in excess of current needs.”

Lippert noted, “Having completed our first full quarter since the executive transition, we believe that the process has been seamless, and we are pleased to report the 52% increase in year-over-year quarterly earnings. As we develop our strategic plans for the future, we expect to continue along the same path which has historically brought us success – profitable growth in our core RV and manufactured housing markets, diversification into adjacent industries, and cost control and production efficiencies. We believe the keys to accomplishing these goals are continuing to invest in new product development and customer service, as well as identifying areas where additional savings can be realized. I am confident that our management team has the ability to execute our strategic goals for the long-term growth of the company.”

To view the entire report click here.

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Drew Industries to Issue 3Q Financials on Nov. 1

October 18, 2013 by · Leave a Comment 

Drew Industries Inc., a manufacturer of components for the recreational vehicle and manufactured housing industries, will release its third quarter 2013 financial results before the market opens on Nov. 1.

Drew, parent to Lippert Components Inc. and Kinro Inc., also will host a conference call on Nov. 1 at 11 a.m. ET to discuss its results and other business matters. Participation in the question-and-answer session of the call will be limited to institutional investors and analysts.

Individual investors, retail brokers and the media are invited to listen to a live webcast of the call on Drew Industries’ website at www.drewindustries.com.

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Ind. Gov. Attends Drew Industries HQ Opening

October 2, 2013 by · Leave a Comment 

Ind. Gov. Mike Pence (left) with Drew Industries CEO Jason Lippert (right) and Jim McKee, president of the Goshen City Council.

Calling it a “great company,” Indiana Gov. Mike Pence visited the new headquarters of Drew Industries Inc. today (Oct. 2) to help celebrate the relocation of the RV industry’s largest supplier to Elkhart County.

Drew, parent company of Lippert Components Inc. and Kinro Inc., recently completed its previously announced plans to relocate its corporate headquarters from White Plains, N.Y., to Elkhart, and to expand its Indiana manufacturing operations.

“This is a real success for Elkhart County, and for the state and people of Indiana,” said Gov. Pence, who was joined at the podium by Elkhart Mayor Dick Moore and Goshen City Council President Jim McKee. “This ribbon-cutting reaffirms that the RV market is coming back stronger than ever — and it will be centered here in the state of Indiana for generations to come.”

In introducing the governor, Drew CEO Jason Lippert reflected on the origins of Lippert Components, the division of Drew Industries founded by his grandfather Lawrence C. Lippert in Michigan in 1956. His father, Doug Lippert, took over the company in 1979.

“Drew acquired Lippert in 1997,” Jason noted. “At the time, we were doing about $100 million in sales. Today, Drew is a billion-dollar revenue company — and we’ve grown to more than 5,500 employees nationwide.

“When I started with the company in 1994, we had about 600 employees in Elkhart County and the surrounding areas. I’m proud to say that, today, we have about 4,500 employees in the state of Indiana. We also are the largest supplier to the RV industry. Through Lippert and Kinro and our 50 factories in the U.S., Drew supplies full lines of products to the leading manufacturers of the RV, manufactured housing and specialty vehicle markets.

“To put it best,” he continued, “this new headquarters for all of our leadership teams symbolizes the company’s maturity, strength, and potential. Indiana has a strong and talented workforce, and is home to many of our customers and employees. That’s why Elkhart County was Drew and Lippert’s logical choice for relocation. Our customers are here, our facilities are here, our employees are here — and, now, our national headquarters is here.”

In his remarks, Gov. Pence noted that, “as is being recognized more and more nationally, Indiana is quite simply the best place in America to start a business, grow a business and get a job.

“We’ve been sending a message all across the country for the last eight years and nine months, that Indiana is open for business,” he continued. “We’ve been doing that by making the hard decisions, of living within our means. This last session of the Indiana General Assembly, we passed another honestly balanced budget — more than 12% in our budget are reserves. At a time when many states are struggling, Indiana is showing nearly $2 billion in the bank. In addition to that, we passed the largest state tax cut in history, we declared a moratorium on red tape and Indiana just a few short years ago became the first Midwest state in America to recognize the right to work.

“That, combined with our commitment to education, innovation and reform is making days like this a possibility — and making days like this the right decision for more and more businesses all across America.”

The new facility gives Drew Industries room for growth, with 50,000-square-feet of office space and 110,000-square-feet of manufacturing and warehousing space.

“This new facility allows us to have our executive team under one roof,” Drew President Scott Mereness noted in an accompanying release. “Centralizing our management and shared services personnel will improve communications and cultivate our tradition of long-term team building. It also provides a larger home for Kinro’s thermoforming operation with room for continued expansion.”

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Drew Reports Record 2Q Sales, Improved Profits

August 6, 2013 by · Leave a Comment 

Drew Industries Inc., parent to RV and MH suppliers Lippert Components Inc. (LCI) and Kinro Inc., today (Aug. 6) reported improved earnings, driven by higher margins, along with record sales for its second quarter, ended June 30.

Net income for the period was $15.9 million, or 67 cents per diluted share, compared to $11.7 million, or 52 cents per share, the previous year.

“Our operating profit margins improved sequentially in the second quarter of 2013 primarily due to efficiency improvements implemented by management, as well as the benefits of spreading fixed costs over a seasonally larger sales base and seasonally lower payroll taxes,” said Jason Lippert, Drew’s CEO. “This sequential margin gain was greater than originally expected, as many of the improvements implemented by management resulted in efficiency gains sooner than anticipated. We were confident that the steps we had taken to meet anticipated customer demand and improve profitability were correct, and it was reassuring to see the results of these efforts in the 2013 second quarter.”

Net sales in the second quarter increased to a record $287 million, 14% higher than $251 million in the same period last year. The growth was a result of a 16% sales increase by Drew’s RV segment, which accounted for 88% of consolidated net sales this quarter. Sales of recently introduced components for towable and motorhome RVs also contributed to the revenue increase, as did sales to adjacent industries and the aftermarket.

The company reported that its content per towable RV and motorhome for the 12  months ended June 2013 increased 5% and 23%, respectively, from the year-earlier period as a result of recent product introductions, product improvements and market share gains.

For the six months, Drew posted net income of $24.2 million, or $1.03 per share, versus $22.8 million, or $1.01 per share, a year ago while sales rose to $539.8 million from $474.56 million.

Our labor efficiencies continued to improve, with labor costs as a percent of sales declining in the second quarter of 2013,” continued Jason Lippert. “This improvement followed a sequential reduction of labor as a percent of sales of more than 1%t in the first quarter of 2013. These reductions during the first two quarters of 2013 were primarily due to improved production processes, as well as expected declines in the costs of implementing facility consolidations and realignments. Nonetheless, we are continuing to implement additional efficiency improvements as we identify them. However, the benefits of such improvements on our operating margins in the latter half of 2013 will likely be offset by the spreading of fixed costs over a seasonally smaller sales base.”

In July 2013, Drew’s consolidated net sales reached approximately $83 million – 13% higher than in July 2012 – as a result of continued solid growth in the company’s RV segment.

To view the entire report click here.

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Drew to Release 2Q Earnings Report on Aug. 6

July 23, 2013 by · Leave a Comment 

Drew Industries Inc., a manufacturer of components for the recreational vehicle and manufactured housing industries, will release its second quarter financial results before the market opens on Aug. 6.

Drew Industries, parent to Lippert Components Inc. and Kinro Inc., also will host a conference call on Aug. 6 at 11 a.m. EDT to discuss its results and other business matters. Participation in the question-and-answer session of the call will be limited to institutional investors and analysts. Individual investors, retail brokers and the media are invited to listen to a live webcast of the call on Drew Industries’ website at www.drewindustries.com.

Participating in the conference call will be Chairman Leigh Abrams, CEO Jason Lippert and Joe Giordano, CFO and treasurer.

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Lippert Adding Hundreds of Jobs to Elkhart Co.

May 28, 2013 by · Leave a Comment 

When Jason Lippert talks about being bullish on the recreational vehicle industry, he’s clearly not kidding.

As reported by the South Bend Tribune, Drew Industries Inc., parent to Lippert Components Inc. and Kinro Inc., will be moving from White Plains, N.Y., to Elkhart, Ind. resulting in about six new jobs.

But of greater importance to the region is Lippert Components and Kinro Inc. are in the process of adding 500 new jobs that will push Drew’s total employment in the Elkhart County area to 5,300 by 2016. And Lippert and Kinro project another 300 jobs being added after 2016.

Lippert Components makes windows, mattresses, upholstered seating, leveling devices, suspension products, slideouts and other accessories for the RV industry as well as components for the manufactured housing industry. Kinro produces doors and windows for the RV and manufactured housing industries.

“Overall, we’re just bullish on the industry,” said Lippert, who is CEO of Drew Industries as well as the subsidiaries. “The products have never looked better.

To read the entire article click here.

 

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Drew Reports Record 1Q Sales, Earnings Drop

May 3, 2013 by · Leave a Comment 

Drew Industries Inc., parent to RV and manufactured housing suppliers Lippert Components Inc. and Kinro Inc., reported record sales during its first quarter, ended March 31.

Sales during the three-month period increased 13% to $253 million compared to $223.5 million a year ago. First quarter net income was $8.4 million, or 36 cents per diluted share, versus $11.1 million, or 49 cents per share, in the previous year.

“Our operating profit margin was below the first quarter of 2012 due to production inefficiencies and costs incurred as a result of our significant growth and expansion over the past year; however, profit margins improved sequentially in the 2013 first quarter,” said Fred Zinn, Drew president and CEO. “Our operating profit margin for the first quarter of 2013 was 5.8% before executive succession charges, compared to 4.1% in the 2012 fourth quarter. This sequential margin gain was less than originally projected, primarily due to higher material costs, substantial fixed costs invested in customer service and in anticipation of further sales growth, and seasonally higher payroll taxes.”

“In the first quarter of 2013, our labor efficiencies continued to improve, with labor costs as a percent of sales declining more than 1% compared to the fourth quarter of 2012,” added Jason Lippert, CEO of Lippert Components and Kinro. “We are also implementing additional efficiency improvements. As we previously reported, we expected the cost of implementing facility consolidations, realigning production and improving production processes to continue in the first quarter of 2013, although to a lesser degree than in the 2012 fourth quarter, and this was the case. These costs are expected to decline further in the second quarter of 2013. We remain confident in our ability to achieve further profit improvement, particularly during the second half of 2013, as these costs return to more normal levels, and as the bottom-line impact of the efficiency improvements gains momentum.”

Sales in the first quarter of 2013 increased despite a temporary slowdown in RV industrywide production levels in late March 2013. The increase in Drew’s first quarter net sales was a result of a 15% sales increase by its RV segment, which accounted for 89% of consolidated sales this quarter. RV segment sales growth was primarily due to a 10% increase in industrywide wholesale shipments of travel trailer and fifth-wheel RVs, Drew’s primary RV market. Sales of recently introduced components for towable RVs, as well as motorhome components, also increased, as did sales to adjacent industries and the aftermarket.

In April 2013, RV industrywide production levels improved following the slowdown in late March, and Drew’s consolidated net sales reached a monthly record $100 million, 20% higher than in April 2012.

The company’s content per travel trailer and fifth-wheel increased 11% from the year-earlier period as a result of recent product introductions, product improvements and market share gains.

As previously announced, Fred Zinn will retire as president and CEO in May and Lippert will become Drew’s CEO while Scott Mereness will serve as Drew’s president. Drew will also be relocating its headquarters from White Plains, N.Y., to Elkhart, Ind.

As a result of the company’s executive succession and corporate relocation, Drew recorded a pre-tax charge of $1.1 million in the first quarter related to contractual obligations for severance and the acceleration of equity awards held by certain employees whose employment will terminate as a result of the relocation to Indiana. The Company will record an additional pre-tax charge of $0.7 million related to contractual obligations in the second quarter . No other related charges are expected thereafter. Once the transition and corporate office relocation are completed, the company will save approximately $2 million annually.

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Drew Industries to Report 1Q Financials May 3

April 19, 2013 by · Leave a Comment 

Drew Industries Inc., a key supplier to the recreational vehicle and manufactured housing industries, will release its first quarter 2013 financial results before the market opens on May 3.

Drew also will host a conference call on May 3rd at 11 a.m. (Eastern Time) to discuss its results and other business matters. Participation in the question-and-answer session of the call will be limited to institutional investors and analysts.

Individual investors, retail brokers and the media are invited to listen to a live webcast of the call on Drew Industries’ website at www.drewindustries.com.

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Drew Follows Thor to Centralize in Elkhart Co.

April 11, 2013 by · Leave a Comment 

For the second time in less than four months, Indiana’s Elkhart County is scoring another corporate headquarters, according to a report by the South Bend Tribune.

Following on the heels of Thor Industries Inc.’s move from Ohio to Elkhart, Drew Industries Inc. announced it would move its corporate headquarters here from White Plains, N.Y.

Thor, which already is a major employer at its recreational vehicle plants in the region, recently moved into its new headquarters along the St. Joseph River in downtown Elkhart.

Drew, a manufacturer of components for recreational vehicles and manufactured homes, will move into a vacant building at 3501 County Road 6. A ribbon-cutting event is scheduled for sometime in June to mark the move and expansion in the county, said Dorinda Heiden-Guss, president of the Economic Development Corp. of Elkhart County.

All told, the announcement by Drew is expected to result in about 800 new jobs over the next several years. Beyond the move of corporate headquarters, Drew’s subsidiaries, Lippert and Kinro, will undertake industrial expansions at existing plants in Elkhart and Goshen that will result in the lion’s share of the new jobs.

Goshen City Council took the first step Tuesday to approving tax abatement for the industrial expansion that will create nearly 400 new jobs at Drew Industries’ plants in the city. Elkhart City Council is expected to take the first step Monday for its portion of the expansion.

Drew plans to invest $12.75 million to renovate and equip four manufacturing plants it operates in Goshen and Elkhart. The company will install new manufacturing and production lines, which are expected to be operational this year.

“We have experienced significant growth over the past three years,” said Jason D. Lippert, chairman and chief executive officer of Lippert Components and Kinro, in a release from the Indiana Economic Development Corp.

To read the entire article click here.

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Drew’s Relocation Bringing Jobs to Elkhart Co.

April 10, 2013 by · Leave a Comment 

Drew Industries Inc.’s plans to relocate its headquarters from White Plains, N.Y., to Indiana’s Elkhart County will add up to 800 jobs to the area, according to a press release from the Indiana Economic Development Corp.

Drew, parent to RV and manufactured housing suppliers Lippert Components Inc. and Kinro Inc., announced the relocation in February along with key management changes, including the appointment of Jason D. Lippert as the company’s chairman and CEO.

The company said it plans to invest $12.75 million to renovate and equip four manufacturing facilities in Goshen and Elkhart. As part of the project, Drew will install new manufacturing and production lines, which are expected to be operational this year.

“Our focus on job creation is paying off as Indiana’s economic momentum continues,” said Gov. Mike Pence. “Drew Industries’ announcement builds on our strength as the RV capital of the world and serves as the latest proof that our convenient location, competitive tax environment and talented workforce have put Indiana on the map as a state that works for business.”

With more than 5,200 full-time employees across the country, Drew Industries currently has approximately 3,400 employees in Indiana. The company has already begun hiring additional engineers, furniture assemblers, general laborers, drivers and welders in Elkhart County.

“We have experienced significant growth over the past three years,” said Lippert. “When looking to relocate our corporate headquarters, Indiana made the most sense due to its talented workforce, and because most of the RVs produced in the United States are produced in Elkhart County. We greatly appreciate the support provided to us by the state of Indiana, Elkhart County and the cities of Goshen and Elkhart and we look forward to continued growth and future success here.”

“We’re excited about Drew Industries’ plans for expansion,” said Elkhart Mayor Dick Moore. “This expansion further solidifies Elkhart’s position as the RV capital of the world. I look forward to many more future expansions like this in the community.”

The Indiana Economic Development Corporation offered Drew  up to $4.3 million in conditional tax credits and up to $200,000 in training grants based on the company’s job creation plans. These tax credits are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. The city of Elkhart and the city of Goshen will consider additional property tax abatements at the request of the Economic Development Corporation of Elkhart County.

“Elkhart County is fortunate to have Drew Industries,” said Goshen Mayor Allan Kauffman. “They have become one of the largest employers in the city of Goshen and Elkhart County. We are pleased with their ongoing commitment to investing in our community and applaud their success.”

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