Ply Gem Reports Strong Fourth Quarter of 2017March 5th, 2018 by Editor
Ply Gem’s net sales increased 11.8 percent to $516.9 million in the fourth quarter of 2017, the company reported on Monday.
The company says the net sales increase was primarily driven by improved U.S. market demand, higher Canadian net sales, new business success and higher average selling prices. Gross profit margin was 21.3 percent, which represented a decrease of 110 basis points from the fourth quarter of 2016. The decrease in gross profit margin resulted from higher freight and raw material input costs for aluminum, PVC resin, and glass that were not fully offset with higher selling prices.
On January 31, 2018, Ply Gem entered into a agreement under which private-equity firm Clayton, Dubilier & Rice (CD&R) will acquire the company for about $2.4 billion. CD&R also entered into an agreement to buy Atrium Windows & Doors with the intent of combining Atrium with Ply Gem. The deal is expected to close during the second quarter of 2018.
“We believe the new Ply Gem will continue to provide our customers with exceptional value and service while generating long-term growth and value creation for the shareholders of the new combined company,” said Gary E. Robinette, Ply Gem’s Chairman and CEO.
Net sales for Ply Gem’s doors and windows division totaled $279.3 million, an increase of $24.1 million, or 9.5 percent, compared to $255.2 million for the fourth quarter of 2016. The company says net sales increase can be attributed to improved U.S. and Canadian market demand conditions, which favorably affected its new-construction and repair-and-remodeling business, and higher average selling prices.
“In the fourth quarter, we continued to drive financial improvements within our business segments despite the product demand and input cost headwinds related to the residual impact of Hurricanes Harvey and Irma,” said Shawn K. Poe, Ply Gem’s chief financial officer.