LCI Industries, a leading supplier of engineered components to manufacturers in the transport and recreation markets, has reported lower-than-expected production levels in its latest quarter. This decrease can be attributed to extended shutdowns at pontoon manufacturers in the marine industry.
While recreational vehicle production has shown a slow and modest start after the holiday shutdowns, it is surpassing January 2023 levels. This sector is expected to demonstrate an improving trend, with stronger year-over-year performance projected for February orders.
LCI Industries anticipates sales for the final quarter of 2023 to range between $832 million and $842 million. This figure is lower than the $894 million reported during the same period the previous year. However, the company expects its loss to narrow, projecting a per-share loss of between 4 cents and 14 cents, compared to 68 cents in the fourth quarter of 2022.
Jason Lippert, President and CEO of LCI, stressed that the company is dedicated to reducing non-strategic costs and utilizing its flexible capacity to enhance margins. He also noted that LCI is achieving solid growth in its aftermarket segment and other adjacent businesses, which helps counterbalance the weaknesses observed in the RV and marine industries.