Ply Gem Suffers First-Quarter Losses

May 7th, 2015 by Editor

The recent harsh winter helped drive Ply Gem Holdings Inc. to a first-quarter loss of $48.9 million. plygem

The company posted a loss of 53 cents per share, which was more than Wall Street analysts expected. Yahoo Finance reported that Zacks Investment Research predicted a loss of 38 cents per share.

Ply Gem reported sales of $376 million in the period, an increase of 39.6 percent from the first quarter of 2014.

“The seasonality of our business and the typical winter weather experienced in our market footprint traditionally impacts our ability to leverage the business during the first quarter,” said Gary E. Robinette, Ply Gem’s president and CEO, in a statement.  “While much of the residential housing market experienced favorable weather conditions during the first half of the quarter, the extreme winter weather that occurred during March and early April presented a challenge to our business. While we anticipate the housing market to continue to experience near-term choppiness, we remain encouraged by the macro-economic trends that continue to support the long-term recovery of the housing industry. As we further integrate Simonton and continue progress on our strategic initiatives, we are well positioned to take advantage of the housing market rebound and recovery in residential new construction and remodeling activity.”

Ply Gem’s net sales of doors and windows totaled $219.6 million, up $87.2 million, or 65.9 percent, compared to $132.4 million in the first quarter of 2014. The increase for the quarter was mostly related to Ply Gem’s acquisition of Simonton, which was completed in September 2014 and accounted for increased sales of $63.4 million during the first quarter of 2015.

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