Masonite posts strong profits and sales in Q3
Door and door systems manufacturer Masonite reported third quarter sales increased 12% to $728 million from third quarter sales of $652 million in the third quarter 2021.
North American Residential sales were $579 million, a 19% increase compared to the third quarter of 2021, driven by a 23% increase in average unit price (AUP), partially offset by a 3% decrease in volume and a combined 1% decrease due to unfavorable foreign exchange and lower component sales.
Sales in Europe were $66 million, a 22% decrease compared to the third quarter of 2021, attributable to a 21% decrease in volume, a 13% decrease due to unfavorable foreign exchange, and a 1% impact from lower component sales, partially offset by a 13% increase in AUP.
Architectural net sales were $78 million, a 3% increase compared to the third quarter of 2021, driven by a 13% increase in AUP, partially offset by an 8% decrease in volume and a 2% impact from lower component sales.
The Tampa, Fla.-based company also posted a net income attributable to Masonite of $57 million in the third quarter of 2022 compared to $38 million in the third quarter of 2021.
Masonite also recently announced that it is acquiring Endura, a manufacturer of high-performance door frames and door system components. The deal calls for Masonite to pay approximately $375 million in cash, subject to customary closing adjustments and regulatory approval.
Founded in 1954, Endura has been a family-owned business for three generations. The company employs approximately 800 people across four facilities located in North Carolina, Texas and Oregon.
Endura products are sold to distributors located throughout the United States and Canada, as well as direct to OEMs and online. Endura’s net sales for the 12 months ended September 2022 were approximately $270 million representing a compound annual growth rate of 17% since 2019.
“I am very proud of the work we have done at Endura over the past seven decades to build a trusted brand, an amazing portfolio of innovative products, world-class manufacturing operations and a book of business based on tremendous customer relationships,” said Bruce Procton, president of Endura. “We have been partners with Masonite for more than 25 years, and I could not think of a better company to help take Endura into the next era."
Masonite plans to integrate the Endura business into its North American Residential business segment. Procton and his leadership team will remain part of the business to ensure a smooth transition for Endura customers and to focus on new product development and commercialization.
The transaction is currently expected to close near the end of 2022, Masonite said.
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The Bottom Line: Profits at Masonite surge ahead 50% as residential sales in North America see a 19% leap.
What the CEO said: “Our core North American Residential business continued to deliver outstanding results this quarter, allowing Masonite to achieve double-digit net sales growth despite significant macroeconomic headwinds in our European segment,” said Howard Heckes, president and CEO. “The pending acquisition of Endura Products, a U.S. manufacturer of innovative door system components, will drive further momentum and fuel our ‘Doors That Do More strategy.”
Company info: Click here to read the full this quarter 2022 financial report from Masonite.