Boston, MA 05/12/2014 (wallstreetpr) – Exterior building products manufacturer, Ply Gem Holdings Inc (NYSE:PGEM) announced a wider net loss for the first quarter despite revenue growth of 4.8%. The results were hurt by a weak gross margin due to harsh winter and came in below the Street expectations. For the long-term, the company sees favorable housing market.
1Q Results
Ply Gem Holdings Inc (NYSE:PGEM) reported a net loss of $51.58 million or a loss of 76 cents a share in the first quarter of 2014, which is wider than the net loss of $24.26 million or a loss of 57 cents a share in the 2014 first quarter. On average, analysts expected the company to suffer a loss of 43 cents a share.
Net sales rose 4.8% to $269.46 million from $257.1 million in the year-ago quarter. This is approximately 1.5% lower than the Street analysts’ predictions of $273.37 million revenue.
The company’s gross profit dipped 4.9% to $39.81 million from $41.85 million, while selling; general and administrative expenses jumped 41.5% to $54.08 million from $38.22 million in the previous year quarter.
Ply Gem Holdings Inc (NYSE:PGEM) said that its gross margin slipped 1.5 percentage points to 14.8% during the latest quarter under review hurt by a fall in organic net sales in its siding, fencing, and stone division or 14.2% unfavorable impact from the winter season.
Outlook
Moving ahead, the company is looking at the long-term opportunities as positive though there is a near-term deceleration in the U.S. housing market scenario. It is also confident of recapturing margin in its Windows and Doors division through the expansion of volume even as the regional builders will be more active.
Ply Gem Holdings Inc (NYSE:PGEM) is also confident of saving about $15.0 – $20.0 million in cost savings besides synergies from its acquisitions of Ginenow and Mitten apart from the overall prospects of growth. The company is also looking to strengthen its position even while the underlying macro trends ticking upwards.
