EAGAN, MN -- Cabinetry firm Norcraft says improved sales and a 38% increase in income from operations provided a positive first quarter report. Norcraft Holdings, L.P. and Norcraft Companies, L.P. net sales increased $0.5 million, or 0.9%, to $61.8 million for first quarter 2010 ended March 31. Income from operations increased $1.2 million, or 38.5%, from to $4.5 million.
Norcraft said losses narrowed for Norcraft Holdings, which include the accounts of its wholly-owned subsidiary, Norcraft. Holdings' results reflect obligations under a $118.0 million 9 3/4% senior discount notes due 2012. In December 2009, Norcraft and its wholly-owned subsidiary, Norcraft Finance Corp., issued $180.0 million principal amount of 10 1/2% senior secured second lien notes that are due in December 2015.
"Our industry continues to show signs of recovery, and we remain cautiously optimistic that conditions will continue to improve," says Norcraft president and CEO Mark Buller. "Market conditions are still challenging, and we continue to respond with cost containment initiatives, new product introductions and sales programs," commented President and CEO, Mark Buller.
Norcraft's 500-employee StarMark Cabinetry operation in Sioux Falls, SD, told local papers it hired 29 workers in April and another 15 in May after business grew 20 percent . The Argus Leader reports StarMark management said growth springs from combining a custom line and standard line of cabinetry to make it a more affordable but still flexible in design; with demand in tyhe Northeast U.S. particularly strong.
Norcraft Companies, said to be the fifth-largest cabinetry firm in the U.S., manufactures, assemble and finish kitchen and bathroom cabinetry providing stock, semi-custom and custom cabinetry manufactured in both framed and full access construction, and marketed under six brands: Mid Continent Cabinetry, Norcraft Cabinetry, UltraCraft, StarMark, Fieldstone and Brookwood. For more>>
Have something to say? Share your thoughts with us in the comments below.