WINCHESTER, VA. Cabinetry manufacturer American Woodmark reported a $7.4 million loss second quarter of fiscal 2011, even as sales rose 3 percent to $107.6 million. Results in each of its sales channels grew at the same over overall, the company says.
Gross profits for the second quarter of fiscal year 2011 was 9.1% of net sales, about one fourth lower, as a percent of sales, in the year prior period. The decline in gross profit margin "primarily reflected the unfavorable impact of increased sales promotion costs that were included as either reductions of sales or increases to cost of sales during the second quarter of fiscal year 2011," American Woodmark said in its earnings release.
American Woodmark manufactures and distributes kitchen cabinets and vanities for the remodeling and new home construction markets. Its products are sold on a national basis directly to home centers - selling Shenandoah Cabinetry brands at Lowe's, American Woodmark at Home Depot, and Timberlake Cabinetry through major builders and through a network of independent distributors for new construction. American Woodmark operates eleven cabinetry manufacturing facilities and nine service centers across the country.
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