? Thermoformed bath, kitchen, and other products ? Appliances ? Vinyl, aluminum, and frameless windows
? Manual, electric, and hydraulic stabilizer and ? Televisions and sound systems
COVID-19 AND RUSSIA-UKRAINE WAR UPDATE
North American Recreational Vehicle Industry
We currently expect production in the marine and manufactured housing markets to remain at or near current run rates through the remainder of 2022.
Net sales of the OEM Segment in the second quarter of 2022 increased $411.6 million, compared to the same period of 2021. Net sales of components to the following OEMs markets for the three months ended June 30 were: (In thousands)
According to the RVIA, industry-wide wholesale unit shipments for the three months ended June 30 were:
Travel trailer and fifth-wheel RVs 133,700 133,800 0 % Motorhomes
OEMs for the different types of RVs produced for the twelve months ended June 30, divided by the industry-wide wholesale shipments of the different product mix of RVs for the same period, was: Content per:
Travel trailer and fifth-wheel RV $ 5,382 $ 3,621 49 % Motorhome
Our average product content per type of RV excludes international sales and sales to the Aftermarket Segment and Adjacent Industries. Content per RV is impacted by changes in selling prices for our products, market share gains, and acquisitions.
Our increase in net sales to OEMs in Adjacent Industries during the second quarter of 2022 was driven by selling price increase, market share gains, and wholesale production growth.
•Pricing changes to targeted products, resulting in an increase in operating profit of $42.9 million compared to the same period of 2021.
•Increases in material commodity costs, which negatively impacted operating profit by $60.1 million, primarily related to increased steel and aluminum costs.
•Additional amortization related to intangible assets from acquisitions completed in the last twelve months, which reduced operating profit by $3.3 million.
According to the RVIA, industry-wide wholesale unit shipments for the six months ended June 30 were:
Travel trailer and fifth-wheel RVs 285,900 265,000 8 % Motorhomes
Our increase in net sales to RV OEMs of travel trailers, fifth-wheel, and motorhome components during the first six months of 2022 was driven by selling price increases, market share gains, and acquisitions during the first six months of 2022.
•Pricing changes to targeted products, resulting in an increase in operating profit of $94.7 million compared to the same period of 2021.
•Increases in material commodity costs, which negatively impacted operating profit by $170.3 million, primarily related to increased steel and aluminum costs.
•Additional amortization related to intangible assets from acquisitions completed in the last twelve months, which reduced operating profit by $6.8 million.
Aftermarket Segment - Second Quarter
Total Aftermarket Segment net sales $ 259,872 $ 229,066 13 %
Net sales of the Aftermarket Segment increased during the second quarter of 2022, primarily due to selling price increases to targeted products and acquisitions.
•The impact of fixed costs due to reduced organic volumes, which decreased operating profit by $3.7 million related to fixed selling, general, and administrative costs and $1.6 million related to fixed overhead costs.
•Investments in marketing activities and administrative structure of $5.0 million.
•Increases in direct labor costs due to production volumes and a tight labor market, which reduced operating profit by $2.5 million.
•Increases in transportation costs, primarily for third party freight, which reduced operating profit by $2.0 million.
•Increases in production overhead costs in order to meet growing sales demands, which negatively impacted operating profit by $1.7 million.
•Pricing changes to targeted products, resulting in an increase in operating profit of $37.0 million compared to the same period of 2021.
•Sales mix increase of higher margin products from the acquisition of Furrion, which positively impacted operating profit by $4.2 million.
Aftermarket Segment - Year to Date
Total Aftermarket Segment net sales $ 507,858 $ 413,074 23 %
Net sales of the Aftermarket Segment increased during the first six months of 2022 primarily due to selling price increases and sales from acquisitions.
•Investments in marketing costs, information technology, and administrative structure of $14.5 million.
•Increases in transportation costs, primarily for third party freight, which reduced operating profit by $6.5 million.
•Increases in production overhead costs in order to meet sales demands, which negatively impacted operating profit by $5.5 million.
•The impact of fixed costs due to reduced organic volumes, which decreased operating profit by $3.5 million related to fixed selling, general, and administrative costs and $1.8 million related to fixed overhead costs.
•Increases in direct labor costs due to production volumes and a tight labor market, which reduced operating profit by $3.0 million.
•Additional amortization related to intangible assets from acquisitions completed in the last twelve months, which reduced operating profit by $1.2 million.
•Pricing changes to targeted products, resulting in an increase in operating profit of $67.9 million compared to the same period of 2021.
•Sales mix increase of higher margin products from the acquisition of Furrion and integration costs, which positively impacted operating profit by $8.1 million.
The Condensed Consolidated Statements of Cash Flows reflect the following for the six months ended June 30:
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