TAMPA, Fla. -Masonite International (NYSE: DOOR) reported strong results third quarter, with net sales up 6 percent to $518 million, a $28 million increase over the year prior. Volume was up 3 percent and unit prices rose 2 percent.
Masonite, which began trading last year on the New York Stock Exchange, says it sold 35 million doors in 2016, yielding $2 billion in revenue. In North America it now operates five molded facings plants, 15 door assembly plants, and 11 Dorfab plants serving retail customers with pre-hanging and finishing.
In the robust North American market, residential net sales were $364 million, an 8 percent increase over the third quarter of 2016, driven by a 5 percent increase in volume, a 1 percent increase in average unit price, and a 1 percent benefit from foreign exchange related to the Canadian dollar. Europe net sales were $75 million, a 7 percent increase. For the first nine months of the year, North American Residential net sales were $1.07 billion, a 6 percent increase over the first nine months of 2016, driven primarily by a 3 percent increase in sales volume and a 2 percent increase in average unit price.
“We are encouraged by the improved volume trend and operational recovery in our business. While the third quarter began with weak margins as we worked through higher cost inventory, they steadily improved each month,” said Fred Lynch, President and CEO. “With our manufacturing productivity back on track to levels we anticipated, we expect margin growth to resume, particularly in 2018 and beyond.”
Architectural net sales were $74 million, a 4 percent decrease from the third quarter of 2016, as unit volume fell 8 percent, but which was partially offset by a 4 percent increase in average unit price and higher components sales. Sales volume was down due to higher production backlogs resulting primarily from the transition of products from the Algoma, Wisconsin, plant to other sites.
Total company gross profit was essentially flat at $104 million in the third quarter of 2016.
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