Masonite to Close Kirkwood, N.Y. PlantDecember 10th, 2012 by DWM Magazine
Masonite filed a notice with the New York Department of Labor late last week announcing that it will close its Kirkwood, N.Y., door fabrication plant, affecting 64 employees. The company projects the layoff date as February 5, 2013, or within 14 days thereafter.
“Economic” reasons are cited as the reason for the closure. The filing also states that “the facility is not governed by a collective bargaining agreement and bumping rights do not exist.”
Earlier this year, the company announced that it would suffer losses due to a reduction in business from its second largest retailer customer [Lowes], starting early in 2013. The affected business, which consists principally of molded doors, is expected to amount to approximately $70 million dollars of sales on an annualized basis.
A Masonite spokesperson confirmed to DWM magazine today that “due to the recent loss of the Lowe’s interior door business in the northeast of the United States, Masonite will close its DorFab plant in Kirkwood, NY.” The Kirkwood plant plans to ship to Lowe’s through the end of February.
“The impacted employees were dedicated to providing the Lowe’s stores with high levels of customer service, which made the decision to close the facilities even more difficult,” said the spokesperson. “The Kirkwood, NY facility has over 70 full time employees. We are exploring options for employees to be considered for other jobs where practical. Those that will be leaving Masonite will be eligible for severance, extended benefits and outplacement assistance consistent with Masonite values.”
When the company announced its third quarter results in November, it announced that net sales increased $49.0 million or 13 percent to $425.0 million in the third quarter of 2012 over the third quarter of 2011. Excluding the impact of foreign exchange, net sales would have increased by $62.9 million or 16.7 percent.
Net sales in the North America segment increased 22 percent to $319 million in the three months ended September 30, 2012, from $261.5 million in the three months ended September 30, 2011. Total company gross profit increased to $55.4 million in the three months ended September 30, 2012, from $45.1 million in the three months ended September 30, 2011.