American Woodmark, one of the nation's largest makers of kitchen and bathroom cabinets, saw declining sales in the new-home construction segment last quarter but gained sales in the remodeling segment.
The Winchester,Va.-based company's overall sales fell 2 percent last quarter to $210.8 million. American Woodmark had previously warned of a decline in second-quarter revenue. New-construction sales declined, but it says remodeling sales grew at a double-digit rate.
American Woodmark has been shifting out of lower-margin products and concentrating on higher-profit, high-end cabinetry.
As a result, earnings rose to $9.2 million, or 57 cents per share, compared to $6.2 million, or 37 cents per share, in its fiscal second quarter a year ago.
Gross profits grew almost 16 percent.
American Woodmark says it expects more declines in new-construction sales as the housing market continues to slow but forecasts continued double-digit gains in remodeling sales through the second half of its 2007 fiscal year.
American Woodmark this month tripled its stock buyback plan and in August doubled its quarterly shareholder dividend.
The company's stock (NASDAQ: AMWD - News) has gained 52 percent so far this year.
Published November 28, 2006 by the Washington Business Journal