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Masonite: negative restructuring effect on results

16.05.2019 − 

In the first quarter US door group Masonite invested some US$22m in restructuring measures. The costs, therefore, already exceeded the figure of US$10-15m budgeted for during the entire period of 2019. Within the scope of the restructuring programme initiated in the fourth quarter of 2018, Masonite intends to separate from some activities that are not part of its core business, to reduce the number of production locations by 10% and to cut back the staff level in North America by some 5% until the middle of the year. The aim is to achieve annual savings of some US$20m per annum in future.

The one-off costs in connection with the restructuring had a negative impact on Masonite’s results in the first quarter. Operating profit declined to US$15.0m. Pre-tax profit and net profit decreased to US$5.0m and US$3.8m respectively. In terms of the EBITDA, adjusted to account for special effects, Masonite was able to achieve a 6.7% increase to US$65.5m. In the period covered by the report turnover improved by 2.4% to US$530.3m. This growth was due exclusively to acquisition effects and higher sales prices.

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