Closed DW position early today as insiders are lining up to sell.
WHITE PLAINS, N.Y. (AP) - Drew Industries Inc. on Monday said hurricane damages have lifted orders for its aluminum and vinyl windows used in manufactured homes.
Although the company does not receive orders directly from the Federal Emergency and Management Association, its clients do. Drew said it has seen "a significant increase" in business from its recreational vehicle and manufactured housing customers.
"The events surrounding Hurricane Katrina, while tragic, created an unprecedented need for housing for the displaced residents of Louisiana and Mississippi," said Leigh J. Abrams, president and chief executive officer.
Drew said its customers reported orders for at least 15,000 towable RVs and more than 10,000 manufactured houses. Shipments to these customers should stretch into the fourth quarter, Drew said. At the same time, the company said it is paying more overtime and posting higher production, delivery and material costs as a result of the rush of orders.
Shares of Drew Industries closed up 14 cents to $26.27 on the New York Stock Exchange, near a recent 52-week high of $26.50.
Drew Industries Reverses $1.5M Charge
WHITE PLAINS, N.Y. (AP) - Drew Industries Inc., a maker of windows for manufactured houses and trailers, on Monday said it settled a workplace injury lawsuit for $1.5 million less than it accounted for and will report that sum as a third-quarter gain.The company said it settled all unpaid claims against its subsidiary, Lippert Components Inc., for $2.8 million. However, Drew previously recorded a charge of $4.3 million to account for the expense, including $1.9 million in the fourth quarter of 2004 and $2.1 million in the first quarter this year, as well as $250,000 of interest to date.The reversal of the previously expensed $1.5 million will boost earnings by 3 cents per share, Drew said. Analysts polled by Thomson Financial currently expect the company to earn 42 cents per share in the third quarter. In a separate statement Monday, Drew said five directors plan to sell about 2.1 million shares, or 9.8 percent of the company's 21 million outstanding common shares. If all the shares are sold, insiders will hold 14 percent of outstanding Drew stock, rather than the current 23 percent.Sellers include President and Chief Executive Leigh J. Abrams, who intends to sell 100,000 shares, Drew said. The stock will be offered in block transactions rather than on the open market.Edward W. Rose III, who has been Drew's chairman since 1979, intends to sell 500,000 shares, and will own 8.3 percent of the outstanding stock after the sale.Shares of Drew Industries closed |
