Image By: Ply Gem Holdings Inc. Ply Gem Holdings Inc. has a distribution agreement for its new molded engineered slate roofing product.
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Topics Mergers & Acquisitions, Canada, United States, Construction, Windows & doors
Building materials maker Ply Gem Holdings Inc. has consolidated manufacturing operations of two facilities it acquired last year in western Canada.
The plants purchased from Calgary, Alberta-based Geinow WinDoor Ltd. are just 20 minutes apart in Calgary and serve the same market, Ply Gem President and CEO Gary Robinette said in an Aug. 8 conference call about second quarter financial results.
Integration and restructuring costs related to combining the facilities had a little drag on the bottom line for the Cary, N.C.-based Ply Gem, which posted an increase in net sales of $41.1 million to $409.2 million thanks to the improved product mix and some price increases that went into effect in March.
In addition to Geinow, a window and door fabricator, last year Ply Gem acquired Mitten Inc., which produces vinyl siding and accessories in Paris, Ontario. Sales of those products along with the price hikes accounted for $24 million of Ply Gem’s net sales in April through June.
Company officials said Ply Gem led the industry in raising prices. They increased prices by about 5 percent for PVC products and as much as 10 percent for aluminum products because of higher resin and material costs.
Ply Gem broadened its offering again recently with the introduction of a new roof product.
“I’m delighted to announce that we have entered into a distribution agreement with our newly developed engineered slate roofing product,” Robinette said. “Initial sales of this product commenced with shipments into the mid-Atlantic and Northeast markets during the third quarter. And, as we look ahead to the third quarter we expect moderate improvement to the macro housing outlook with continued choppiness in the market.”
For the second quarter, Ply Gem’s operating earnings increased to $31.2 million compared to $24.2 million for the second quarter of 2013 after adjusting for $23.5 million of initial public offering costs.