Norcraft reports Q4 sales growth
Improved demand for cabinetry propelled Eagan, Minn.-based Norcraft Companies to a fourth-quarter sales increase of 13%.
The maker of kitchen and bathroom cabinetry in the United States and Canada completed its initial public offering in the fourth quarter, in which sales reached $80.5 million.
“The continued expansion of our operations reflects improving industry demand for quality cabinetry and continued execution on our strategy to expand our presence in our core dealer channel, deliver new products and realize price/mix gains across all our divisions," said Mark Buller, chairman and CEO.
Income from operations in the fourth quarter of 2013 increased 42.0% to $4.6 million from $3.2 million for the fourth quarter of 2012, the company reported. The increase was mainly attributable to higher sales on fixed manufacturing costs, lower freight costs and labor efficiencies associated with increased production. These positive factors were partly offset by moderately higher material costs and $0.5 million of additional corporate expenses related to the company’s IPO.
Sales also increased in the full year ended Dec. 31 -- up 17.6% to $339.7 million. However, the company posted a net loss of $15.2 million for the full year, compared with a net loss of $9.6 million in the full year of 2012.
Buller added: "As we move forward in 2014, we are closely managing our pricing, promotional activities and costs and expect to continue building on the progress we have been making.”
Income from operations of $26.6 million in the full year of 2013 increased 37.2%, up from $19.3 million.