Masonite posts flat sales
Operational expenses and tariffs impact door maker’s profits in 2019.
Masonite reported fourth quarter 2019 sales increased 1% to $531 million from sales of $528 million in the fourth quarter 2018.
Sales for the full year were nearly flat at $2.18 million compared to sales of $2.17 million in the prior year.
The Tampa, Fla.-based door manufacturer posted a fourth quarter net income attributable to the company of $1.6 million, compared to a net income of $12.3 million. The company said that its net income for the period includes charges of $12 million related to restructuring plans and a $4 million pension settlement charge.
Masonite’s full-year net income attributable to the company fell to $44.6 million in 2019 from a net income of $92.7 million in 2018.
For the fourth quarter, Masonite’s North American residential net sales were $359 million, a 3% increase over the fourth quarter of 2018. Europe net sales were $80 million, falling 11%, while Architectural net sales increased 4% to $86 million.
The Bottom Line: Sales are flat as earnings
What the CEO said: “I am pleased that we finished the year strong, with adjusted EBITDA* margin expansion for the fourth consecutive quarter and year-on-year net sales turning positive in the quarter,” said Howard Heckes, President and CEO. “The organization’s focus on continuous improvement has allowed us to largely offset higher operational expenses and the impact of tariffs and deliver on our margin improvement initiatives. As we enter 2020, we remain committed to service and quality excellence as we begin to focus on ‘Doors That Do More’.”
Company info: Click here to read the full fourth quarter 2019 and year-end report from Masonite.
At least next report will show increase, even with flat “component” sales, pricing increases will show growth. Never been a fan of $. I prefer unit sales to compare year over year