Q3 2024 LCI Industries Earnings Call Transcript
Key Points
- LCI Industries Inc (LCII) reported a 100 basis point increase in operating margin and an 18% growth in operating income, driven by operational improvements and cost management initiatives.
- The company gained RV OEM market share year-to-date in its top five product categories, which include appliances, awnings, chassis, furniture, and windows.
- LCI Industries Inc (LCII) saw a 7% increase in sales in its automotive aftermarket division, highlighting the success of its diversification efforts.
- The company reduced warranty costs by $10 million during the quarter, showcasing effective product quality and technical training initiatives.
- LCI Industries Inc (LCII) continues to focus on innovation with new product introductions like the touring coil suspension (TCS) and antilock brakes (ABS), which are expected to drive future growth.
- Net sales declined by 5% during the quarter to $915 million, reflecting continued softness in the RV and marine markets.
- OEM net sales decreased by 6% from the same period in 2023, with RV OEM sales down 2% due to lower motor home shipments and a shift towards smaller, lower-content trailers.
- International sales were down 9% due to high inventory levels and extended OEM shutdowns, impacting overall revenue.
- The marine segment experienced a 16% decline in sales, attributed to inflation and high interest rates affecting retail demand.
- The aftermarket division's operating profit margin contracted by 100 basis points due to temporary mix shifts and increased facility costs.
Good morning or Good afternoon and welcome to the LCI Industries third quarter earning school. My name is Adam and I'll be your operator for today. If you'd like to ask a question during the Q&A portion of today's call, you may do so by pressing star one by one on your telephone keypad. Oh, I now hand the floor to Lillian Etzkorn to begin to Lillian. Please go ahead when you are ready.
Good morning, everyone and welcome to the LCI Industries third quarter, 2024 conference call. I am joined on the call today with Jason Lippert, President and CEO along with Kip Emenhiser VP of Finance and Treasurer, we will discuss the results for the quarter in just a moment. But first, I would like to inform you that certain statements made in today's conference call regarding LCI industries and its operations may be considered forward-looking statements under the security laws and involve a number of risks and uncertainties. As a result, the company cautions you that there are a number of
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