Lippert Components has reported net sales of $1.1 billion in the second quarter of 2024, up 4% year-on-year.
But North American marine OEM net sales in the second quarter of 2024 were $64.2 million, down 33% year-on-year and July 2024 figures show a 16% decline in marine sales compared to July 2023.
The organisation had an operating profit margin of 8.6%, up from 5.4% in the second quarter of 2023 and reduced its inventory by 142 million from the second quarter of 2023.
“We delivered strong second quarter results, with revenue growth in towable RV OEM, Aftermarket, and certain Adjacent OEM businesses,” said Jason Lippert, LCI Industries’ president and CEO.
“Our strategy has been working. Diversification continues to help mitigate market cyclicality and support margins, while innovation is fuelling content growth.
“Continued expansion into new product markets is also broadening our reach.”
And he explained that substantial cash flows are being generated, with reduced inventories and action to optimise and enhance Lippert’s manufacturing footprint.
Diversification continues to help mitigate market cyclicality and support margins, while innovation is fuelling content growth.
Jason Lippert, LCI Industries’ president and CEO
“Efforts to increase efficiencies, driving operational effectiveness through continuous improvements, are also helping to lift profitability,” he concluded.
The increase in year-over-year net sales for the second quarter of 2024 was primarily driven by increased North American RV wholesale shipments of travel trailers and fifth-wheels and market share gains in the automotive aftermarket, partially offset by lower North American marine sales volume.
OEM net sales for the second quarter of 2024 were $796.1 million, an increase of $37.1 million compared to the same period of 2023.
RV OEM net sales for the second quarter of 2024 were up 20% but adjacent Industries OEM net sales for the second quarter of 2024 were down 12% year-on-year, primarily due to lower sales to North American marine and utility trailers OEMs, driven by current dealer inventory levels, inflation, and rising interest rates impacting retail consumers.
Aftermarket net sales for the second quarter of 2024 were $258.4 million, up 1% year-over-year, primarily driven by market share gains in the automotive aftermarket, partially offset by lower volumes within marine and RV aftermarkets, which were negatively impacted by lower consumers’ discretionary spending.
Operating profit of the Aftermarket Segment was $40.0 million in the second quarter of 2024, or 15.5% of net sales, compared to $36.5 million, or 14.3% of net sales, in the same period in 2023.
