Masonite posts mixed Q3 results
Price increases were not enough to offset rising manufacturing costs.
Masonite reported that third quarter 2018 sales increased 8% to $557 million compared to third quarter 2017 net sales of $518 million.
Excluding foreign exchange, net sales increased 9%, the door manufacturer said.
Net income attributable to Masonite for the third quarter was $25 million, down 16% compared to $29 million for the same period a year ago. The decline was primarily due to a loss on the extinguishment of debt.
“We delivered another quarter of year on year sales growth, due again to strong performance from our acquisitions and higher average unit prices,” said Fred Lynch, president and CEO of Masonite. “However, in the third quarter, the benefit from previous price increases was not enough to fully cover rising costs. Our team continues to pursue multiple strategies to improve margins despite a strong inflationary environment.”
The Tampa, Fla.-based company’s increase in net sales for the quarter was the result of a 7% increase in volume from acquisitions and a 4% increase in average unit price, partially offset by a 3% decrease in base volumes and other components and a 1% decrease from foreign exchange, Masonite said.
North American residential net sales were $368 million, a 1% increase over the third quarter of 2017, while Europe net sales were up 22% to $91 million. Architectural net sales were $92 million, up 25% increase from the third quarter of 2017. The 2018 acquisition of Graham & Maiman and the 2017 acquisition of A&F Wood Products combined to contribute 26% of incremental net sales.
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