Woodmark Posts Declines In Fiscal Third Quarter

Winchester, VA — American Woodmark Corp., the Winchester, VA-based manufacturer of cabinets, vanities and related products, has announced declines in both net sales and net income for the company’s third fiscal quarter.

According to the publicly traded cabinet supplier, net sales for the three-month period ended Jan. 31, 2007 declined 16% from the same quarter the previous year, to $161.2 million.

Net income for the third quarter of fiscal 2007 was $3.78 million, down from $6.07 million in the same period a year earlier, American Woodmark reported, noting, however, that net income for the first nine months of fiscal 2007 was $26.38 million, up 39% from the prior year.

The third-quarter sales decline, according to American Woodmark, was the result of mid-single-digit growth in sales to the remodeling sector being more than offset by a double-digit decline in sales to the slumping new-construction sector.
American Woodmark, like many other major cabinet companies, relies heavily on sales to the builder market, which has significantly cooled in recent months.

Corporate officials said they expect the current sales trend to continue through the fiscal quarter, and anticipate that core product sales for the second half of fiscal 2007 will be down between 7% and 9% below the same period last year.