WINCHESTER, VA — Kitchen cabinet and vanity manufacturer, American Woodmark Corp. reported an 18% decline in net sales for the third quarter of fiscal 2008 compared to the third quarter of fiscal 2007.
Net sales were $132.8 million for the third quarter of 2008. Sales of core products declined 14% as remodeling and new construction sales declined. Despite reducing operating expenses by 7%, the company says gross profit was adversely affected by: one-time “severance and separation” costs; a plant closing; inefficiencies in labor; overhead and freight costs stemming from lower sales volumes; and rising fuel costs.
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