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| 8-K - LCI INDUSTRIES | v195890_8k.htm |
EXHIBIT
99.1
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FOR
IMMEDIATE RELEASE
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Contact: Fred Zinn,
President and CEO
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E Mail: Drew@drewindustries.com
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DREW
INDUSTRIES EXPANDS RV PRODUCT LINE
White
Plains, New York – September 1, 2010 – Drew Industries Incorporated (NYSE:DW)
today reported that its wholly owned subsidiary, Lippert Components, Inc., has
expanded its line of RV products and services.
Chassis
Customization
On Aug.
30, Lippert Components acquired the operating assets of Sellers Mfg., Inc.,
which modifies chassis primarily for producers of Class A and Class C Motorhome
RVs, transit buses, and specialized commercial trucks. Automotive manufacturers
of these types of chassis produce standard-length chassis, and Sellers Mfg.
customizes the chassis lengths to meet the particular needs of motorhome,
transit bus and specialized commercial truck producers. The chassis modification
process requires an array of fabricated steel parts that are within Lippert
Components’ existing capabilities, which will eliminate the need for
outsourcing. In addition, Sellers Mfg. manufactures the patented E-Z CruiseTM, a
suspension enhancement system for transit buses and Class C Motorhomes, which
improves the vehicle’s ride performance.
“We
expect that our long-standing relationships with producers of motorhomes and
transit buses will enable us to expand Sellers Mfg.’s customer base and market
share, and increase our penetration into these markets. The Sellers Mfg.
facility, which we are leasing, is large enough to allow us to grow this
operation and meet increasing demand,” said Scott Mereness, President of Lippert
Components.
“The
regional market for customizing motorhome chassis currently exceeds $15 million
annually, and we are excited about the opportunities this new capability
presents,” said Todd Driver, National Operations Director of Lippert Components.
“Working with Sellers Mfg.’s experienced team, our goal is to capture a
significant share of this market and increase our sales of related products for
motorhomes.”
Advanced RV Locking
System
In an
unrelated transaction, Lippert Components entered into a license for the
exclusive right to manufacture and sell the patent-pending RVLOCKTM, a
remotely operated locking system for towable RV entry doors (www.rvlock.com).
“This
sleek new battery-operated system integrates the remote features into the door
handle and eliminates the need for multiple parts which are currently necessary,
reducing warranty exposure. RVLOCKTM also
eliminates the need for hard-wiring to the vehicle’s electrical system,” said
Jason Lippert, CEO of Lippert Components. “We estimate that during 2010
approximately 270,000 towable RV entry doors will be produced by the industry.
Each year, more and more remote locking systems are used on RV entry doors. In
addition, we plan to market entry doors with the RVLOCKTM to the
equestrian and cargo trailer industries. The easy installation, enhanced
security, and contemporary styling of the RVLOCKTM
will allow us to continue as the leading manufacturer of RV entry doors.
We believe that RVLOCKTM is the
most advanced locking system available and that it will appeal to both RV
manufacturers and retail customers,” added Jason Lippert. “We look forward to
continuing to work with the inventors of RVLOCKTM, who
have agreed to make other innovative related products available to
us.”
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2
Fred
Zinn, President and CEO of Drew Industries, said “The acquisitions of these new
products and services continue our history of successfully increasing our RV
content per unit, a critical component of our long-term strategy. The initial
cost of these transactions aggregated less than $1 million, which was paid from
available cash. Future royalties on the RVLOCKTM will be
based on sales.”
About
Drew
Drew,
through its wholly owned subsidiaries, Lippert Components and Kinro, supplies a
broad array of components for RVs and manufactured homes, including windows,
doors, chassis, chassis parts, bath and shower units, axles, and upholstered
furniture. In addition, Drew manufactures slide-out mechanisms for RVs, and
trailers primarily for hauling boats. Currently, from 25 factories located
throughout the United States, Drew serves most major national manufacturers of
RVs and manufactured homes in an efficient and cost-effective manner. Additional
information about Drew and its products can be found at www.drewindustries.com.
Forward-Looking
Statements
This
press release contains certain “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995 with respect to
financial condition, results of operations, business strategies, operating
efficiencies or synergies, competitive position, growth opportunities for
existing products, plans and objectives of management, markets for the Company’s
Common Stock and other matters. Statements in this press release that are not
historical facts are “forward-looking statements” for the purpose of the safe
harbor provided by Section 21E of the Securities Exchange Act of 1934 and
Section 27A of the Securities Act of 1933.
Forward-looking
statements, including, without limitation, those relating to our future business
prospects, revenues, expenses and income (loss), cash flow, and financial
condition, whenever they occur in this press release are necessarily estimates
reflecting the best judgment of our senior management at the time such
statements were made, and involve a number of risks and uncertainties that could
cause actual results to differ materially from those suggested by
forward-looking statements. The Company does not undertake to update
forward-looking statements to reflect circumstances or events that occur after
the date the forward-looking statements are made. You should consider
forward-looking statements, therefore, in light of various important factors,
including those set forth in this press release, and in our subsequent filings
with the Securities and Exchange Commission.
There are
a number of factors, many of which are beyond the Company’s control, which could
cause actual results and events to differ materially from those described in the
forward-looking statements. These factors include, in addition to other matters
described in this press release, pricing pressures due to domestic and foreign
competition, costs and availability of raw materials (particularly steel and
steel-based components), availability of credit for financing the retail and
wholesale purchase of recreational vehicles (“RVs”), availability and costs of
labor, inventory levels of retail dealers and manufacturers, levels of
repossessed RVs, the disposition into the market by the Federal Emergency
Management Agency (“FEMA”), by sale or otherwise, of RVs purchased by FEMA,
sales declines in the RV industry, the financial condition of our customers, the
financial condition of retail dealers of RVs, retention of significant
customers, interest rates, and oil and gasoline prices. In addition, national
and regional economic conditions and consumer confidence affect the retail sale
of RVs.
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