LCI Industries has delivered solid results in the first quarter of 2024, down 1% year-on-year with marine sales seeing a greater decline.
The organisation had net sales of $968 million, with a net income of $37 million and an inventory reduction of $34 million in the first quarter, down $175 million from the first quarter of 2023.
“We are committed to making continued operational improvements across our footprint, with a focus on creating flexible capacity while reducing costs,” said Jason Lippert, LCI Industries’ president and CEO. “We continue to reduce inventory and focus on cash generation as we progress through the year.
“With our fortified balance sheet, we will continue investing in R&D and innovation while pursuing strategic growth opportunities and returning capital to shareholder.”
He added: “Looking ahead, we are well-positioned to capture market share gains and advance our competitive position throughout 2024.”
Decreased selling prices
The decrease in net sales was primarily driven by lower North American marine production levels and decreased selling prices.
April 2024 consolidated net sales were around $378 million, up 12% from April 2023, mainly due to an approximate 17% increase in North American RV production, which was partially offset by a decline of around 33% in marine sales compared to April 2023.
In addition, Adjacent Industries OEM net sales for the first quarter of 2024 were $298.7 million, down 17% year-over-year, primarily due to lower sales to North American marine OEMs.
North American marine OEM net sales in the first quarter of 2024 were $65.4 million, down 45% year-on-year.
Aftermarket net sales for the first quarter of 2024 were $209.7 million, down 3% year-on-year.
The decline was primarily driven by lower volumes within marine markets and the impacts of inflation and increased interest rates on consumers’ discretionary spending.
