LCI Industries provided select preliminary, unaudited financial results ranges for the fourth quarter of 2022. For the first time since at least 2011, Lippert is projecting a quarterly loss.
The company expects to lose 62 cents to 73 cents per diluted share in the quarter. Net sales for the quarter are expected to be in the range of $890 million to $900 million.
“During the fourth quarter, RV OEMs made larger-than-anticipated adjustments to production levels by taking a collective month of production down in order to normalize inventories as retail demand slowed, which had an adverse impact on our results,” LCI Industries President and CEO Jason Lippert said. “In response, we moved quickly to align our operations and manufacturing costs to current market conditions in order to support profitability in 2023, and as a result, we incurred severance-related and inventory reserve costs in the fourth quarter.”
Despite the impacts, Jason Lippert said the company’s core RV demographics remained strong.
“RV dealer inventories are starting to come down,” he said. “We anticipate RV OEM production to return to run rates more consistent with 2019 levels in the back half of 2023.”
Jason Lippert said the company’s non-RV related businesses have been more resilient and he expects an aftermarket rebound as parts supply improves.
“Additionally, our teams continue to drive new innovative products to support future growth,” Jason Lippert said. “In the interim, our experienced leadership team is taking prudent action, adjusting our cost structure while executing on our proven diversification strategy to minimize the impact of softened RV demand, drive sustainable growth, and generate long-term shareholder value.”
Lippert is scheduled to report final fourth-quarter financial results Feb. 14.
