American Woodmark / AMWD

About American Woodmark

3102 Shawnee Dr., Winchester, Va. 22601
www.americanwoodmark.com | 540-665-9100 | Founded: 1980

Industry: Manufacturing | Category: Public Companies

With a healthy housing market and no shortage of home makeover shows on television, American Woodmark executives had reason to be energized about their prospects in 2005. The Winchester company began the year by opening a new manufacturing plant on the outskirts of Cumberland in Allegany County, Md., which is capable of producing 6,000 kitchen and bathroom cabinets a day. Then in June, its cabinets were featured in an episode of Bravo's "Queer Eye for the Straight Guy."
Sales increased each quarter. Yet profits tumbled, especially in the second half of the year because of a spike in the price of petroleum and rising costs of crucial raw materials, such as lumber. With 15 manufacturing plants and 10 builder service centers across the country, the company's cabinets travel quite a bit before being installed in homes, and transportation costs hit hard. In its first quarter of fiscal 2006, ended July 31, American Woodmark said it had sales of $215.6 million, an increase of 15 percent over the comparable period a year earlier. But profit was $7.5 million, a decline of 23 percent. In its second quarter, ended Oct. 31, the company said it earned $6.2 million, a 46 percent decline from a year earlier. Chairman and chief executive James J. Gosa characterized the company's operating results as "unacceptable."
In November, American Woodmark announced that it would cut staff and raise prices on some of its products to make up for its sluggish performance. Glenn Eanes, the company treasurer, said the reductions would come "mostly through attrition" but with some "minor layoffs" as well. Approximately 63 percent of sales in fiscal 2005 were in the home remodeling market and 37 percent in new homes sales.
The company named Kent Guichard its chief operating officer in September.

President and CEO: Kent B. Guichard

CFO and VP: Jon Wolk

2005 Financial Data

Revenues: $776,990,000 | Net Income: $35,591,000
Asssets: $361,168,000 | Earnings Per Share: $2.11
Stockholder Equity: $215,191,000 | Annual Dividend: $0.12
Total employees: 6,370 | Local employees: 1,000