Woodmark Posts Mixed Results In 4th Quarter

by WOHe

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.

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