LCI Industries reported its financial results for the three and nine months ended September 30, 2024, showing a mixed performance in net sales and significant improvements in profitability metrics compared to the same periods in 2023.
For the third quarter of 2024, net sales totaled $915.5 million, a decrease of 4.6% from $959.3 million in Q3 2023. For the nine-month period, net sales were $2.938 billion, slightly down from $2.947 billion in the prior year. The decline in sales was primarily attributed to reduced demand in the RV market, particularly for motorhomes, which saw a 20% drop in sales to OEMs.
Despite the decrease in sales, LCI Industries experienced notable growth in profitability. Gross profit for Q3 2024 increased to $220.0 million from $210.9 million in Q3 2023, while gross profit for the nine months rose to $710.3 million from $615.1 million. Operating profit for the third quarter was $53.9 million, up from $45.6 million, and for the nine months, it surged to $202.1 million from $120.8 million. The operating profit margin improved to 5.9% in Q3 2024, compared to 4.8% in the same quarter of the previous year, driven by lower material and freight costs.
Net income for Q3 2024 was $35.6 million, or $1.39 per diluted share, compared to $25.9 million, or $1.02 per diluted share, in Q3 2023. For the nine-month period, net income reached $133.3 million, significantly up from $66.6 million in the prior year. The effective tax rate decreased slightly to 25.2% from 25.9%.
The company also made strategic moves, including the acquisition of the furniture operations of CWDS, LLC for $20 million in May 2024, enhancing its OEM segment. As of September 30, 2024, LCI Industries had cash and cash equivalents of $161.2 million, a substantial increase from $66.2 million a year earlier.
In terms of operational metrics, the OEM segment accounted for 76% of consolidated net sales, while the Aftermarket segment contributed 24%. The OEM segment's net sales for Q3 2024 were $684.5 million, down from $728.5 million in Q3 2023, while the Aftermarket segment saw a slight increase in sales.
Overall, LCI Industries demonstrated resilience in profitability despite facing challenges in sales, particularly in the RV market, and continued to pursue growth through strategic acquisitions and operational efficiencies.
About LCI INDUSTRIES
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