Masonite makes a miss in Q2
Masonite International Corporation managed to eke out a small 1% sales gain in the second quarter, but it wasn't enough to satisfy economists.
After the company announced its earnings on Thursday, Masonite's stock fell 19.79% by the end of trading.
In total, net sales reached $520 million (compared to $514 million last year), and net income decreased to $27 million (from $33 million in the year-ago period).
A 2% increase in volume contributed to net sales growth, due primarily to new retail business wins and a 2% increase in average unit price.
“The impact of softer than expected demand, foreign exchange, and certain plant consolidations resulted in modest net sales growth in the quarter, while the benefit of improved pricing was offset by approximately $4 million of discrete costs related to legal reserves, the resolution of customer claims in the UK and plant transition costs. Operating and distribution inefficiencies remained a challenge and we continue to take the actions we believe are necessary to improve our manufacturing and distribution performance,” said Fred Lynch, President and CEO.
“In the absence of higher net sales growth in the second half, we would not expect to achieve 2017 Adjusted EBITDA that is meaningfully higher than 2016 given increased wage inflation and operating costs that are expected to continue," added Lynch.
The company also revised its net sales growth rate outlook — and adjusted EPS — down.
Tractor Supply breaks ground on new DC
Tractor Supply Company is beefing up its distribution infrastructure in the Northeast with the construction of a new distribution center in Frankfort, New York.
This will be the eighth total distribution center for the farm and ranch retailer, which also operates DCs in Casa Grande, AZ, Franklin, KY, Hagerstown, MD, Macon, GA, Pendleton, IN, Waco, TX, and Waverly, NE.
“The addition of our new distribution center in New York is important to our continued growth, as the facility will provide Tractor Supply the capacity we need to further our store expansion in the Northeast Corridor of the country,” said Greg Sandfort, Chief Executive Officer. “We are always looking for new ways to reach our customers as quickly and efficiently as possible, and this distribution center will play a critical role in our digital fulfillment strategy. We’re excited to begin the building process and look forward to a longstanding partnership with the great Frankfort community.”
New York Governor Andrew Cuomo said, "We have invested more in the Mohawk Valley in six years than the region had seen in decades and it’s paying off. Unemployment is down, while private sector jobs are up and we've successfully attracted Tractor Supply Company to Herkimer County, which will soon create 350 good jobs for hard-working Upstate New Yorkers. This is a huge win for Herkimer County and the entire region, and we look forward to a long, successful partnership with the company."
A groundbreaking ceremony was held on Wednesday, with Tractor Supply executives and local government officials in attendance.
The facility is expected to begin shipping by the end of 2018 and will be approximately 930,500 square-foot in size, with the potential to create more than 350 new full-time jobs over the next six years.
“This groundbreaking is the result of several years of work and dedication by many to bring a tenant to the Frankfort 5S South Business Park,” said Chairman Bernard Peplinski, Sr., of the Herkimer County Legislature. “As the walls go up and the doors open later next year, the residents of Herkimer County and the surrounding area will benefit from the additional jobs and resulting economic growth as we work with Tractor Supply.”
Senator James Seward said, “Whenever I discuss economic development for the Mohawk Valley, the conversation inevitably turns to the Frankfort 5S South Business Park, also known as the Pumpkin Patch. Tractor Supply’s arrival is great news and the project will stimulate our regional economy leading to future growth and more good paying jobs for our families.”
Assemblyman Anthony Brindisi of Utica said, “Tractor Supply Company will be an outstanding tenant and will bring job opportunities to many area residents, which will help businesses in surrounding communities as well. Through securing state funding toward the cost of a new water tower and infrastructure improvements, we were able to help make this project a reality. I want to acknowledge the Herkimer County Legislature, the Herkimer County IDA, and everyone else who partnered on this very significant investment in our community.”
Sylvania’s plug-and-play smart bulb
The makers of Sylvania lightbulbs say the company’s new HomeKit-enabled Sylvania Smart A19 Full Color Light Bulb will be ready for delivery in September.
The company says the bulb will be the first that can be easily controlled via Siri and Apple’s Home app, and doesn’t require buying a separate hub or smart socket. Another feature, it doesn’t need a Wi-Fi router to function.
Consumers will screw in the Bluetooth-enabled bulb into any lamp, sync it with the Home app on their Apple device, and start controlling the light.
The product carries an MSRP of $44.99.
Ledvance, maker of SYLVANIA general lighting in the US and Canada, describes the product as a breakthrough that brings smart-home features to the masses.
Our new HomeKit-enabled Sylvania Smart products are perfect for those who have heard how great it is to have a Smart Home but aren’t yet ready to tackle the installation and maintenance responsibilities of a larger system. Every iPhone, iPad and Apple Watch user already has the Home app at their disposal,
“Our new HomeKit-enabled Sylvania Smart products are perfect for those who have heard how great it is to have a Smart Home but aren’t yet ready to tackle the installation and maintenance responsibilities of a larger system,” said Aaron Ganick, head of Smart Business Americas, Ledvance.