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Masonite adjusts 2019 forecast downwards

14.08.2019 − 

Following restrained business in the first six months Masonite International has adjusted its forecast for the entire period of 2019 downwards. The company meanwhile only expects turnover to improve by a maximum of 2%, whereby increases are likely to be achieved exclusively due to prices rises and special effects, not via organic growth. Originally Masonite anticipated turnover growth of 3-5%. The expected target range for the adjusted EBITDA has been narrowed from US$275-305m down to US$275-295m.

In the second quarter the group was confronted by declines both in turnover and key results figures. Quarterly turnover decreased by 0.7% to US$562.9m. With regard to sales volumes, turnover dropped by as much as 7%, Currency effects also had a negative impact. The fact that overall turnover declined only slightly is due to price increases in the reporting period and acquisition effects. The profits situation deteriorated due to the relatively high costs for the restructuring programme launched in the fourth quarter of 2018. In the second quarter operating profit decreased by 10.7% to US$46.4m. Pre-tax profit declined by 18.8% to US$35.4m. Net profit, at US$24.2m, was also significantly lower. Adjusted to account for special effects, the EBITDA - at US$79.7m - nevertheless remained 1.8% above the previous year’s figure. The margin calculated on the basis of the adjusted EBITDA amounted to 14.2%.

In the first half year Masonite generated total turnover to the amount of US$1.093bn, which was 0.8% higher than the comparative figure of the preceding year. Key results figures mainly declined. An exception was the adjusted EBITDA, which improved by 3.9% to US$145.2m.

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