Kitchen cabinets and vanity manufacturer Norcraft Companies, Inc. (NYSE:NCFT), reported sales gains for first quarter ended March 31, 2014. Norcraft Cabinetry sales increased 8.6% to $84 million in the first quarter, growing in nearly all divisions, even though icy winter weather delayed deliveries. A better mix of pricing and promotion is credited.
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"We are encouraged by the 8.6% sales growth we achieved amid adverse weather conditions which impacted our volumes to start the year," said CEO Mark Buller in announcing the results. "We also worked hard to leverage sales and extract additional efficiencies to offset weather-related production disruptions and modest material inflation."
Buller said, "We remain positive on the recovery in residential end markets and are well positioned to continue growing our business as cabinetry demand improves.”
Norcraft markets its products through seven main brands: Mid Continent Cabinetry, Norcraft Cabinetry, UltraCraft, StarMark Cabinetry, Fieldstone Cabinetry, Brookwood and Urban Effects.
Income from operations in the first quarter of 2014 increased $0.9 million, or 15.2%, to $6.8 million from $5.9 million for the first quarter of 2013. The increase was mainly attributable to higher sales and lower freight costs.
These positive factors were partly offset by moderately higher material costs, the adverse impacts of production inefficiencies related to labor and supply chain disruptions caused by unfavorable weather conditions, and increased incentive stock compensation expense from stock options issued in connection with the Norcraft's recently completed initial public offering.
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