As sales slip, Masonite posts Q4 loss
Door manufacturer Masonite reported fourth quarter 2023 sales declined 2% to $661 million from fourth quarter 2022 of $676 million.
North American residential sales reached $538 million, increasing 2% from the prior fourth quarter. Sales in Europe fell 13% to $53 million.
The Tampa, Florida-based building products manufacturer also posted a $10 million loss attributable to Masonite compared to net income of $31 million in the fourth quarter of 2022. The decrease was primarily driven by $33 million in charges related to goodwill impairment in the Europe reporting unit, the company said.
Sales for the full year also declined 2% to $2.83 billion compared to 2022 sales of $2.89 billion.
Masonite posted a full-year net income of $118 billion, down 45% from a net income of $214 million in 2022.
The financial report arrives after Masonite and Owens Corning entered into a definitive agreement on Feb. 8. Under the terms of the deal, Owens Corning will acquire all of the outstanding shares of Masonite for $133 per share in cash.
The transaction has been unanimously approved by both companies' board of directors and is subject to Masonite shareholders' approval. The transaction is anticipated to close by the middle of 2024.
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The Bottom Line: As sales sag 2%, Masonite reported a $10 million loss for the fourth quarter.
What the CEO said: "Thanks to strong execution of our 2023 playbook, Masonite was able to deliver net sales and adjusted EBITDA* within the guidance we announced at the beginning of the year and cash flow that significantly exceeded our initial guidance," said Howard Heckes, President and CEO. "Subsequent to year end, we announced a deal that will make Masonite a part of the Owens Corning family in 2024. We see this combination as a tremendous opportunity to accelerate our Doors That Do More™ strategy with an industry leader, while delivering substantial value to our shareholders.”
Company info: Click here to read the full fourth quarter financial report from Masonite.
