Sales increase 20% at American Woodmark
In its first quarter ended July 31, the Winchester, Va.-based company pointed to growth in both its remodel and new construction business.
The company’s net sales increased 20% to $131.2 million in the quarter. However, it still posted a net loss of $2.7 million. In the first quarter last year, American Woodmark’s net loss was $3.4 million.
Gross profit for the first quarter of fiscal year 2012 was 14.0% of net sales, compared with 13.2% in the first quarter of the prior fiscal year.
The company said the improvement in gross profit margin reflected the impact of increased sales volume on direct labor and manufacturing overhead costs. Those benefits were offset, however, by higher sales promotional expenses and higher materials and fuel costs.
3M purchases composite maker
Building products giant 3M has agreed to purchase Nida-Core Corp., a Florida manufacturer that makes composite building materials, according to an article in the Minneapolis St. Paul Business Journal.
Nida Core also has a small French affiliate, Structiso, that 3M also is acquiring. Its products, which are used to build boats and snowboards, will help 3M build its composite and engineered materials product portfolio, according to the newspaper.
Foreclosures on the rise
Bad news for the housing market was delivered Aug. 22 by the Mortgage Bankers Association, which reported that the percentage of homeowners who have missed at least one mortgage payment on their homes has risen for the second straight quarter.
The delinquency rate, which does not include loans in the process of foreclosure, dropped 4.43% at the end of the second quarter, down nine basis points from the first quarter. But the delinquency rate was an improvement from a year ago, when it was 14 basis points lower.
The combined percentage of loans in foreclosure plus those with at least one payment past due was 12.5%, a 23-basis point increase from last quarter, but 143 basis points lower than a year ago.
"While overall mortgage delinquencies increased only slightly between the first and second quarters of this year, it is clear that the downward trend we saw through most of 2010 has stopped. Mortgage delinquencies are no longer improving and are now showing some signs of worsening," said Jay Brinkmann, MBA’s chief economist. "The good news is the continued decline in long-term delinquencies, those mortgages that are three payments or more past due. The bad news is that drop is offset by an increase in newly delinquent loans one payment past due."