Drew Industries Enters Into Aluminum Extrusion Supply Agreement And Sale Of Extrusion Assets

ELKHART, Ind., April 24, 2014 /PRNewswire/ — Drew Industries Incorporated
(NYSE: DW), a leading supplier of components for recreational vehicles (RVs) and
manufactured homes, today announced that its wholly-owned subsidiary, Lippert
Components, Inc., has entered into a six-year aluminum extrusion supply
agreement with Atrium Windows and Doors, Inc. (“Atrium”), a Dallas, Texas based
aluminum extrusion business. Concurrently, Lippert Components sold certain of
its aluminum extrusion assets to Atrium.

“Extruded aluminum is a key raw material for us, and identifying a strong
supplier such as Atrium was critical in our search for a new third-party
supplier,” said Scott Mereness, Drew’s President. “We were able to reach an
agreement with Atrium to supply us with a portion of our extruded aluminum
requirements over the next six years at a competitive market price.”

“We look forward to this new supplier relationship with Lippert Components,”
added Brian Slobodow, Chief Operating Officer of Atrium. “Atrium has been
extruding aluminum for over 35 years, with a history of producing high quality
products. This additional extrusion volume will be produced at our existing
Texas facility and will significantly increase the capacity utilization of our
plant.”

Drew also reported that it has sold certain of its aluminum extrusion assets to
Atrium for $7.5 million, payable over the next four years, plus contingent
consideration of $1.25 million once 95 million pounds of aluminum extruded
products are purchased during the term of the supply agreement. Drew anticipates
recording a pre-tax loss on this sale of approximately $2 million in the second
quarter of 2014.

Scott Mereness concluded, “As part of our ongoing evaluation of capacity and
asset utilization, we concluded that our aluminum extrusion assets were not
meeting our internal financial standards. The sale of our extrusion related
assets will free up needed manufacturing space, as well as allow management to
focus on other opportunities with higher growth potential. The outsourcing of
these aluminum extrusion requirements to Atrium will immediately be accretive to
earnings.”

About Drew Industries
From 34 factories located throughout the United States, Drew Industries, through
its wholly-owned subsidiary, Lippert Components(TM), supplies a full line of
components for the leading manufacturers of recreational vehicles and
manufactured homes. In addition, Drew manufactures components for adjacent
industries including buses; trailers used to haul boats, livestock, equipment
and other cargo; truck caps; modular housing; and factory-built mobile office
units. Drew’s products include steel chassis; vinyl and aluminum windows and
screens; slide-out mechanisms and solutions; axles and suspension solutions;
furniture and mattresses; thermoformed bath, kitchen and other products; manual,
electric and hydraulic stabilizer and lifting systems; chassis components;
entry, baggage, patio and ramp doors; entry steps; awnings; electronics; and
other accessories. Additional information about Drew and its products can be
found at www.drewindustries.com.

About Atrium
For more than 60 years, Atrium Corporation has offered the highest quality
window and door products to builders, contractors and distributors in the
residential construction industry. Dedicated to meeting the needs of its
customers, the Atrium family of brands provides a versatile range of window and
patio door products, including vinyl and aluminum models, as well as replacement
and new construction product lines. The company’s portfolio of brands includes
Atrium, North Star, Thermal, and Superior. Atrium’s Supply Chain Component
division includes its Aluminum Extruders division, American Screen
Manufacturing, Atrium Extrusion Systems (AES) and Dow-Tech Plastics. Additional
information on Atrium can be found at www.atrium.com.

Forward-Looking Statements – Drew Industries
This press release contains certain “forward-looking statements” with respect to
our financial condition, results of operations, business strategies, operating
efficiencies or synergies, competitive position, growth opportunities,
acquisitions, 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, as
amended, and Section 27A of the Securities Act of 1933, as amended, and involve
a number of risks and uncertainties.

Forward-looking statements, including, without limitation, those relating to our
future business prospects, net sales, 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. 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 aluminum) and other components, availability of credit
for financing the retail and wholesale purchase of products for which we sell
our components, availability and costs of labor, employee retention, inventory
levels of retail dealers and manufacturers, levels of repossessed products for
which we sell our components, changes in zoning regulations for manufactured
homes, seasonality and cyclicality in the industries to which we sell our
products, the financial condition of our customers, the financial condition of
retail dealers of products for which we sell our components, retention and
concentration of significant customers, realization of efficiency improvements,
the successful entry into new markets, the costs of compliance with increased
governmental regulation, interest rates, oil and gasoline prices, the impact of
international, national and regional economic conditions and consumer confidence
on the retail sale of products for which we sell our components, and other risks
and uncertainties discussed more fully under the caption “Risk Factors” in our
Annual Report on Form 10-K for the year ended December 31, 2013, and in our
subsequent filings with the Securities and Exchange Commission. We disclaim any
obligation or undertaking to update forward-looking statements to reflect
circumstances or events that occur after the date the forward-looking statements
are made, except as required by law.

SOURCE Drew Industries Incorporated

Leave a Reply


Fatal error: Call to undefined function show_subscription_checkbox() in /home3/steer/public_html/indianapressreleases.com/wp-content/themes/comfy/comments.php on line 95