TAMPA — One of the big names in making doors, Masonite International Corp., saw its market value decline by hundreds of millions of dollars Thursday morning following the company reporting far weaker than expected earnings and cutting back its business forecast.
“The bottom line is we are not not at all satisfied with our operational performance in the first half of the year,” Fred Lynch, CEO of Tampa-based Masonite, told analysts. “We clearly have more work to do.”
Company shares were down between 22 and 24 percent in mid-morning trading.
Lynch cited a range of company challenges ranging from “operating and distribution inefficiencies” and higher legal reserves to wage pressure and a weakness in the North American residential market.
“The labor market remains tight,” Lynch said, citing the prospect of wage inflation. “We expect that trend to only continue,” which he said would require further actions to offset the additional expense.
“We continue to manage other costs very tightly,” he said.
Net income for the quarter fell to $27 million, down from $33 million in the same quarter of 2016. Net sales rose 1 percent to $520 million, which Lynch attributed largely to a partnership with Home Depot in its Florida stores.
The Canadian door manufacturer has long maintained its headquarters in Tampa. It employs about 9,000 worldwide. Its stock trades under the symbol DOOR on the New York Stock Exchange.
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