Ply Gem Reports Third Quarter Results; Sales Down due to Continued Decline in Housing StartsNovember 22nd, 2010 | Category: Industry News
Ply Gem Holdings Inc. announced financial results for the third quarter and first nine months of 2010. Net sales for the first nine months of 2010 were $775.4 million, higher than the comparable prior period net sales of $736.8 million by $38.6 million, or 5.2 percent.
Operating earnings for the first nine months of 2010 improved $23.2 million to $51.2 million compared to operating earnings of $28.0 million for the first nine months of 2009. Adjusted EBITDA for the first nine months of 2010 was $98.6 million compared to Adjusted EBITDA of $85.9 million for the first nine months of 2009.
“The third quarter of 2010 saw a decline in single family housing starts of 13.5 percent primarily driven by the federal home buyer tax credit, which expired on April 30th of this year, thus having the effect of pulling market demand forward into the first half of the year,” says Gary E. Robinette, president and chief executive officer of Ply Gem.
“As a result of the decline in building and remodeling activity, our sales for the third quarter were down just 8.2 percent which we believe is comparable to the industry …. Given the continued depressed state of the U.S. economy and its impact on a future recovery in the housing market, Ply Gem will continue its focus on maintaining a lean overall cost structure while maximizing cash flow and striving to outperform the marketplace in all business units, which will ensure that Ply Gem emerges stronger as the general economy and housing market recover,” he adds.