Lippert announced record third-quarter revenue as it noted significant cost increases.
The supplier announced quarterly sales rising 41% from the third quarter of 2020. Profits, however, dipped 7% as input costs increased in 2021.
“We posted strong results in the third quarter considering significant cost pressures related to raw materials, freight, and labor,” Lippert President and CEO Jason Lippert said. “Our teams have continued to do an excellent job in managing the ongoing supply chain challenges to drive organic growth while meeting commitments to our valued customers.”
Lippert said its product content per vehicle rose, taking out Furrion’s contribution to the quarter. Content per towable rose 10.4% to $3,786 and content per motorhome grew 13.9% to $2,732. Lippert cited organic growth, including new product introductions, as the reason for towable content increases.
“(Lippert) historically has outpaced RV industry wholesale shipment trends,” Thompson Research Group CEO Kathryn Thompson said, “given the company’s ability to make acquisitions, and produce new and innovative products, driving up their content per unit.”
Ryan Smith, group president – North America, said the Furrion integration is well underway, and Lippert’s goal is to provide resources to research, development and innovation at the company.
“We look forward to building on this progress with the addition of Furrion,” Jason Lippert said, “which will further enhance our product innovation initiatives, while advancing our footprint into new markets, allowing us to become a more dynamic supplier in the recreation space globally.”
“We also remain focused on adding scalable capacity to meet this demand through new automation projects and other operational initiatives,” Jason Lippert said. “These projects are designed to help us mitigate the impact of heightened material costs and labor constraints to maintain profitability.”
The company reported strong sales continuing into the fourth quarter. Lippert reported October sales were up 52% from October 2020. Lippert stated production increased significantly to meet elevated RV and marine retail demand.
