American Woodmark Profit Down
From the Associated Press
American Wooodmark said its fiscal fourth-quarter profit slid partly due to overhead and freight costs as well as escalating gas prices as sales declined.
The Winchester-based cabinets manufacturer said profit slumped to $36,000 (no cents a share) compared with $6.2 million (40 cents) in the comparable period a year earlier. Revenue for the period ended April 30 fell 14 percent, to $143.3 million.
Remodeling sales declined by a mid single-digit percentage, while new construction sales sagged more than 25 percent, the company said. The company said its gross profit margin dropped due to labor inefficiencies, overhead and freight costs from lower sales volumes and the impact of rising fuel prices on freight and materials costs.
Full-year profit dropped 87 percent to $4.3 million (29 cents) from $32.6 million ($2.04) in the prior year. Annual sales slipped to $602.4 million from $760.9 million.
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