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.
James Hardie appoints independent director
Anne Lloyd served as CFO of aggregates supplier Marietta Materials.
James Hardie Industries plc, the fiber cement building products manufacturer, has appointed Anne Lloyd as an independent nonexecutive director of the company.
Lloyd served as chief financial officer of Martin Marietta Materials, Inc. a leading supplier of aggregates and heavy building materials, for over 12 years from June 2005 until her retirement in August 2017. She joined Martin Marietta in 1998 as vice president and Controller and was promoted to chief accounting officer in 1999. She was subsequently appointed treasurer (2006-2013) and promoted to executive vice president in 2009.
“I am delighted that Anne has agreed to join our Board. With her extensive public company financial and business experience, she will be a valuable addition to the board,” said Michael Hammes, chairman of James Hardie.
Central Garden & Pet appoints new director
John Hanson is a veteran of ConAgra and Oasis Brands.
Central Garden & Pet Company, the supplier and distributor of branded and private label products for the lawn & garden and pet supplies markets, has appointed John Hanson to the company’s board of directors, effective immediately.
The appointment of Hanson increases Central’s board from 9 to 10 directors.
“We are pleased to welcome John to Central’s Board. John’s over 25 years of leadership experience in the consumer packaged goods (CPG) arena make him an invaluable resource for the organization,” said Sonny Pennington, chairman of Central Garden & Pet. “He is well-versed on what it takes for a company to grow both organically and through acquisitions, and we look forward to his engagement with the Board and management as we seek to continue to drive long-term revenue and profit growth, all while enhancing shareholder value.”
Hanson spent 4 years as president of ConAgra’s Frozen Food division and served as CEO of Oasis Brands. He is currently a consultant to CPG companies.