American Woodmark 4Q profit dips as gas costs rise

American Wooodmark Corp. said Wednesday its fiscal fourth-quarter profit slid partly due to overhead and freight costs as well as escalating gas prices as sales declined.

The cabinets manufacturer reported earnings slumped to $36,000, or break-even, compared with $6.2 million, or 40 cents per share, a year earlier.

Revenue for the period ended April 30 fell 14 percent to $143.3 million from $166.1 million.

Analysts polled by Thomson Financial predicted profit of 4 cents per share on sales of $146.6 million.

Remodeling sales declined by a mid single-digit percentage, while new construction sales sagged more than 25 percent, the company said.

The company said its gross profit margin dropped due to labor inefficiencies, overhead and freight costs from lower sales volumes and the impact of rising fuel prices on freight and materials costs.

Full-year net income dropped 87 percent to $4.3 million, or 29 cents per share, from $32.6 million, or $2.04 per share, in the prior year.

Annual sales slipped to $602.4 million, from $760.9 million in the previous year.