CARY, NC -- Ply Gem Holdings, Inc., a leading manufacturer of exterior building products in North America, reported second quarter operating earnings of $24.2 million, compared to operating earnings of $30.9 million for 2012, reflecting more adverse weather conditions experienced in 2013 relative to 2012, labor inefficiencies, and operating ramp-up costs related to significant unit volume increases in our U.S. Window business.
Net sales for the second quarter were $368.1 million, higher than 2012 second quarter net sales of $307.3 million by $60.9 million, or 19.8%.
"Ply Gem's sales continue to benefit from the recovery in new construction markets; however, demand for big ticket repair and remodeling items has been sluggish and further compressed by unfavorable weather conditions during the first quarter that drove higher inventory levels within distribution channels, which resulted in lower demand for our products during April and May," said Gary E. Robinette, Ply Gem's President and CEO.
Mr. Robinette went on to say "The expected recovery in the U.S. housing market represents significant growth opportunity for Ply Gem, however it also brings near-term challenges primarily in the form of labor resource requirements to meet increasing market demand. Recognizing this challenge, earlier this year we launched our enterprise lean initiative that when completed will provide greater manufacturing flexibility."
"In regards to our two recently completed acquisitions of Gienow and Mitten, both of these businesses complement Ply Gem's existing portfolio of products while expanding our North American footprint. I expect each of these strategic acquisitions to yield meaningful synergies and growth opportunities, while enhancing Ply Gem's future sales and earnings performance," concluded Mr. Robinette.