Housing Slump Hurts American Woodmark Results
American Woodmark, one of the nation's largest makers of kitchen cabinets and bathroom vanities, today blamed the housing slump for a 62 percent drop in its first quarter profit and pared back its earnings forecast for the rest of the fiscal year.
In a statement, the Winchester company said its earnings for the quarter ended July 31 fell to $5.1 million (34 cents a share) from $13.4 million (82 cents) in the comparable quarter last year. Revenue slipped 22.5 percent, to $166.1 million from $228.8 million.
The housing downturn and recent credit-market turmoil have hurt the earnings of companies in the construction and home furnishing sectors. Citing those adverse economic conditions, the company reduced its profit forecast for the rest of fiscal 2008.
American Woodmark said it "now expects that tighter credit conditions prevailing in the lending markets will cause the remodeling and new construction markets to remain subdued until these conditions are resolved."
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