NEW YORK - Still struggling to recover from a 1994 restructuring attempt that went awry, building products maker Ply Gem Industries Inc. lost $7.4 million in 1995. The red ink follows a 1994 loss of $8.5 million. Before that, Ply Gem had turned a profit for at least 10 straight years.
Sales for the year ended Dec. 31 were off 7 percent, at $741.4 million, down from $796.4 million in 1994. Ply Gem said the results reflect discontinued products and the impact of its unsuccessful 1994 restructuring begun by previous management. Also, net income was reduced by $7.6 million because of a fourth-quarter charge caused by a new Financial Accounting Standards Board rule that changed how the firm valued information systems and certain fixed assets.
Ply Gem makes wood and plastic building products. The firm, traded on the New York Stock Exchange, does not break out sales for plastic products.
Dana Snyder, president and chief operating officer, said Ply Gem ``is taking aggressive steps to conduct its businesses with the lowest cost structure possible that does not jeopardize quality, customer service and creativity.''
Snyder, former president of Alcoa Construction Products Group, a major plastics firm, was named to his current position in mid-1995.
The goal of the 1994 restructuring, which reduced employment, closed plants and boosted the use of temporary workers, ended up actually increasing costs. That led Ply Gem officials in August 1995 to announce the firm's possible sale as an option to maximize shareholder value.
In its year-end report, Ply Gem listed several improvements it has taken, including a new budget and control process, new incentive programs, greater accountability for results in business units, improved profitability by new procurement strategies and improved manufacturing efficiencies.