Woodmark Posts Mixed Results In 4th Quarter
Winchester, VA American Woodmark Corp. reported that net sales for the fourth quarter ended April 30, 2000 rose 9% over the prior year, to a record $102.1 million, although net income for the quarter declined.
The publicly-traded cabinet manufacturer, headquartered here, reported income of $4.5 million for the quarter, compared with net income of $4.9 million in the same three-month period a year earlier. Including a one-time after-tax charge associated with the recent phaseout of the company's custom cabinet line, net income for the quarter was $3.2 million, the company commented.
American Woodmark announced earlier this summer that it has halted production on its custom cabinetry, and will focus instead on its core product lines, which are aimed primarily at home center chains and the residential construction market. The two brands affected by the decision are Knapp, which had been offered through kitchen and bath dealers and independent distributors, and Coventry & Case, which had been sold through 23 test-market Home Depot stores.
American Woodmark said that its higher fourth-quarter sales were attributable to "strong growth" by the company's customers, particularly in the home center channel.
In contrast, a decline in net margins to 27%, from 28.5% the previous year was due to higher labor, overhead and distribution costs associated with increased demand for the company's products, American Woodmark said.