EAGAN, MN -- Cabinetry manufacturer Norcraft Companies, Inc. (NYSE:NCFT) anticipates continued increased sales through the next quarter driven by new home construction as well as the remodeling  market. 

During a webcast the company reported an 8.1 percent increase in sales during the second quarter. Profits increased $7.3 million over the same time period last year, with increases attributed to higher sales and improvement in labor efficiency and leverage of fixed manufacturing costs. Income from operations in the second quarter of 2014 increased $2.1 million, or 23.1 percent, to $11.2 million from $9.1 million for the second quarter of 2013.

During the conference call CEO Mark Butler attributed the strong quarter to improvement in new construction and home renovations, as well as delayed benefits from divesting in “less profitable” businesses in 2103.

Butler also touted cabinet promotional activities, which he said helped increase sales. Over the first and second quarters of this year, Butler said promotional activities have helped to increase sales.

“The promotional business has been consistent over the past two quarters and we’re seeing a stable market,” Butler said.

While the company enjoyed gains in sales, they were offset by moderately higher material costs, something Butler said the company will continue to keep an eye on as the economy improves. He said the increased costs for hardwoods were passed along to the consumer.

Saying the “demand for higher quality cabinetry is resilient”, Butler said company officials are positive about the coming quarter and believe an improving economy will bolster cabinet sales in the renovation markets.

At the end of the second quarter the company had cash of $46.5 million and total long-term debt of $149.6 million, as compared to cash of $39.1 million and total long-term debt of $150 million at December 31, 2013.

Norcraft produces a broad range of high-quality cabinetry through seven main brands: Mid Continent Cabinetry, Norcraft Cabinetry, UltraCraft, StarMark Cabinetry, Fieldstone Cabinetry, Brookwood and Urban Effects.