Business

Ply Gem shares up 13% after earnings report

Ply Gem Holdings reported Friday that its net sales increased 7.5 percent in the third quarter.

Sales rose $30.4 million to $437.8 million, which was below the $447.2 million that was the consensus among analysts who cover the company, according to Bloomberg.

The company reported earnings per share of 32 cents, compared to 25 cents in the third quarter of 2013. That met analysts estimates.

Ply Gem produces vinyl siding, windows and doors and other products for home exteriors. The company’s gross profit margins improved by 1.8 percent in the quarter, driven by an increase in average selling prices and improved operating results in Ply Gem’s windows and doors business.

Investors reacted positively to the results, pushing Ply Gem shares up 13 percent in afternoon trading Friday.

"While near-term market conditions continue to be choppy, we remain positive about the long-term recovery for the housing industry and our ability to take advantage of the market as it improves given our progress on our strategic initiatives and our recent acquisition of Simonton," Ply Gem CEO Gary Robinette said in a statement.

Ply Gem paid $130 million for Simonton Windows, a vinyl window and patio door manufacturer. Simonton, which is based in Columbus, Ohio, has annual revenues of more than $300 million. Ply Gem is continuing to run Simonton as a stand-alone business, similar to its siding and window group.

Ply Gem shares were trading Friday afternoon at $12.90, up $1.53.

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