Accessories and components manufacturer Lippert Industries this morning announced the financial results for its fiscal third quarter. Net sales during totaled $1 billion, a 15% decline from the year-ago quarter. Net income in the quarter were down 58% to $26 million, or $1.02 per diluted share.
Adjacent industries OEM net sales for the third quarter were $299.2 million, down 11% year over year, primarily due to lower sales to North American marine OEMs. North American marine OEM net sales in the quarter were $72.5 million, down 42% year over year.
According to a statement: “The decrease in year-over-year net sales for the third quarter of 2023 was primarily driven by decreased North American RV wholesale shipments, lower North American marine production levels, and decreased selling prices, which are indexed to select commodities, partially offset by acquisitions.”
OEM net sales, which include some of the company’s marine products, were $728.5 million, down 20% year over year, primarily driven by a 21% reduction in North American wholesale shipments, decreased selling prices and lower North American marine production levels.
Operating profit for the OEM segment was $11.2 million in the quarter, or 1.5% of net sales, compared with $65.2 million, or 7.1%, in the same period of 2022.
“Our commitment to diversification and operational discipline continues to support our performance in a volatile macro environment,” president and CEO Jason Lippert said in the statement. “The strength we are seeing in our diversified businesses, highlighted by substantial margin expansion in aftermarket, greatly contributes to the long-term growth and profitability prospects of Lippert.”
The company did not release forward-looking guidance for the fourth quarter.
