WINCHESTER, Va. - American Woodmark cabinetry sales rose 14 percent, to $249.3 million, outpacing the first nine months of the year, which rose 9 percent to $771.5 million. Both new construction and remodel channels improved during the third quarter, the company says.
Net income soared 21 percent, to $14.6 million. American Woodmark costs rose from increased spending on product launches, and from exiting a lease.
Some builders advanced cabinet orders to the fourth quarter of 2016, which cut into the current quarters' sales.
"The pull forward was a bit stronger than in prior years," said Cary Dunston, American Woodmark CEO, during an earnings call.
"As part of the pull forward, we saw a noticeable increase in the number of spec homes being built, particularly in the Southeast," he said. .
Sales for remodeling were up 4 percent overall, with home centers like Home Depot flat, and dealers up a very strong 23 percent.
"Within the dealer channel, where we have the ability to truly leverage our competitive advantage, we continue to gain share," Dunston said. "Traffic is heavy within our dealers and we remain optimistic in our continued growth and ability to over-index the industry within this channel." [Transcription is courtesy Seekingalpha.com.]
At home center, where American Woodmark has less control over sales incentives, revenue was flat though cabinet unit sales were up by low single digits for the quarter.
American Woodmark is the third largest cabinet company in the 2016 FDMC 300 list, and the 14th largest wood manufacturing firm in North America. It manufactures and distributes kitchen cabinets and vanities for the remodeling and new home construction markets, sold on a national basis directly to home centers like Home Depot, to major builders and through a network of independent distributors. American Woodmark operates nine manufacturing facilities and seven service centers across the country.