WINCHESTER, VA - Cabinetry giant American Woodmark (NASDAQ: AMWD) swung solidly into the black, turning a $5.2 million net profit as fourth quarter sales rose 26% to $171.1 million.
Cabinet sales for new construction jumped 44%.
Restructuring charges for the kitchen cabinet and bathroom vanity supplier to Lowe's and Home Depot are tapering off, as costs associated with last year's plant closings are settled. American Woodmark now operates nine manufacturing plants.
For the full year ended April 30, sales rose 22% to $630.4 million.
The turnaround is dramatic. In the year prior quarter, the net loss was $1.6 million, plus write-downs of slow-moving inventories and a $3.6 million after-tax restructuring charge driving the total fourth quarter 2012 loss to $6.
Similarly, net income for 2013 was $10 million, a complete reverse of the $10.8 million lost posted for 2012.
Reductions in labor and overhead costs from plant closures and higher sales volume improved American Woodmark's results but the company says it is feeling the impact of rising panel and other material costs as the housing construction market heats up.
American Woodmark Corp. invested $15.2 million in its South Branch manufacturing operation in Moorefield, WV, and has been icnreasing employment there.
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