LCI Industries, the parent company of Lippert, announced strong third-quarter earnings, with a net sales increase of 13% to $1 billion, driven by growth in its OEM and aftermarket segments.
The company reported net income of $62 million, or $2.55 per diluted share, and adjusted earnings per share of $1.97. Operating profit was $75 million, with a 7.3% margin. The company attributed the results to a diversified business strategy and increased demand.
“Our diversification strategy has continued to fundamentally contribute to our strong performance, as our team’s outstanding efforts resulted in 13% revenue growth, which drove strong margin expansion and a meaningful increase in adjusted earnings per share of 42%,” president and CEO Jason Lippert said in a statement. “Our leadership teams have worked diligently to optimize our productivity, footprint and resources, positioning the company for strong performance as the industry begins to recover from this prolonged cycle.”
OEM net sales rose $105.6 million, or 15%, to $790 million year-over-year for the third quarter. Operating profit in the OEM segment was $43.6 million, or 5.5% of net sales, compared with $21.8 million, or 3.2% of net sales, in the same period a year ago.
Aftermarket net sales increased 7% to $246.5 million year-over-year. Operating profit of $31.9 million in the aftermarket segment was relatively flat compared with the prior-year period.
The company projects October net sales to be approximately $380 million, up 15% from the prior year. It expects to deliver an 85 basis point operating profit margin improvement for the full year.
