Drew sales, profits drop due to industry slump
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- May
- 5
A decline in the production of recreational vehicles helped drive down first-quarter sales and profits at White Plains-based Drew Industries Inc.
The company earned $9.1 million, or 41 cents a share, during the quarter that ended in March, a 5 percent drop from the profit of $9.59 million, or 44 cents a share, during the first quarter of last year.
Sales dropped 8 percent to $159.15 million.
The company said that industry-wide wholesale shipments of travel trailers and fifth-wheel RVs were down 8 percent. Industry production of manufactured homes dropped 3 percent.
The company supplies parts for RVs and manufactured homes.
Leigh J. Abrams, the company’s president and chief executive, said steps the company took last year to cut costs helped in the just-completed quarter. But he said the company continues to face “profit pressure” as raw material costs have increased sharply this year.
“Assuming the cost of raw materials remains at these high levels, these cost increases will have an annualized effect on our cost of sales of $60 million to $70 million,” he said. “However, we are currently implementing price increases with customers to help offset these price increases.”
The company’s shares were trading at $23.53 at 9:50 a.m., up 78 cents.
This entry was posted
on Monday, May 5th, 2008 at 9:12 am by Allan Drury.
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