TAMPA, FL -- Door manufacturer Masonite International Corporation said Earnings Before Interest, Taxes, Depreciation and Amortization increased to $20.7 million in the third quarter of 2011, up from $13.9 million in the third quarter of 2010. The company said net sales increased approximately 12.3% to $376.0 million in the third quarter of 2011, from $334.9 million in the third quarter of 2010.
The company made two notable acquisitions in the past several months. On November 1, 2011, Masonite completed the acquisition of Birchwood Best, a leading provider of commercial and architectural wood flush door veneers; as well as a significant producer of hardwood plywood. In August, Masonite acquired Marshfield DoorSystems, a leading provider of doors and door components for commercial and architectural applications.
"A great deal of uncertainty remains across the global macroeconomic landscape and several unique challenges continue to plague the housing market, but we successfully grew both net sales and Operating EBITDA during the third quarter behind the integration of Marshfield Door Systems, several key pricing actions implemented in response to escalating commodity costs and by reducing our global salaried workforce by nearly five percent in late September," said Fred Lynch, President and Chief Executive Officer. Mr. Lynch continued, "We are excited about the recently announced acquisition of Birchwood Best which positions Masonite as one of the largest vertically integrated commercial and architectural wood door manufacturers and provider of door components to other industry participants in North America."
Third Quarter Discussion
Net sales in North America increased 13.0% to $261.5 million in the third quarter of 2011, from $231.5 million in the third quarter of 2010. Excluding the impact of favorable foreign exchange, net sales in North America increased 11.2%. Results were primarily driven by incremental sales from acquisitions, as well as, favorable product pricing and mix in the third quarter of 2011, partially offset by lower unit volumes.
Net sales in Europe, Asia and Latin America increased 11.0% to $93.1 million in the third quarter of 2011, from $83.9 million in the third quarter of 2010. Excluding the $5.8 million impact of favorable foreign exchange, net sales increased 4.1%. The increase in net sales was the result of price increases, particularly in the United Kingdom, sales from component products, and incremental sales from last year's expansion into India, which were partially offset by lower unit volumes.