Drew Industries 3Q Net Income Declines
WHITE PLAINS, N.Y. (AP) — Drew Industries Inc., which makes components for recreational vehicles and manufactured housing, said Wednesday that its third-quarter net income fell 30 percent as costs for materials and production increased.
The White Plains, N.Y.-based company's net income fell to $5.6 million, or 25 cents per share, in the third quarter ended Sept. 30. That's down from $8 million, or 36 cents per share, in the same quarter in 2010.
Analysts surveyed by FactSet expected a profit of 36 cents per share.
Revenue rose 13.6 percent to $166.7 million from $146.8 million. Sales of RV components rose 12 percent to $136 million, while manufactured housing sales rose 23 percent to $30 million.
Cost of sales increased 17 percent to $134.7 million from $115 million.
"While the sales price increases we implemented did not fully offset peak raw material costs, based on recent cost trends we expect the impact of high raw material costs to decline over the coming months," Fred Zinn, Drew's president and CEO, said in a statement.
The company did not provide financial guidance but said that its results for the next few quarters will depend on the economy.
Drew shares fell 77 cents, or 3.2 percent, to $22.96 in morning trading Wednesday.