AYI » Topics » Gross Profit

These excerpts taken from the AYI 10-Q filed Apr 8, 2009.

Gross Profit

Gross profit margins decreased 320 basis points to 36.6% of net sales for the three months ended February 28, 2009 from 39.8% reported for the prior-year period. Gross profit decreased $50.6 million, or 26.4%, to $141.4 million for the three months ended February 28, 2009 compared with $192.0 million for the prior-year period. The deterioration in gross profit and gross profit margin was largely attributable to overall volume declines and increased raw materials and component costs which were not recovered by benefits from higher price and richer product mix. The Company estimates that raw material and component costs increased $18 million compared to the year-ago period and believes less than half of this increase was recovered in higher prices. These factors were only partially offset by benefits from programs to improve productivity, delivery performance, and quality. The impact on gross profit from raw material and commodity costs not recovered through price and product mix is expected to continue to be unfavorable, although at a lower rate, for the remainder of the fiscal year.

Gross Profit

Gross profit margins decreased 220 basis points to 37.7% of net sales for the six months ended February 28, 2009 from 39.9% reported for the prior-year period. Gross profit decreased $79.1 million, or 20.0%, to $316.1 million for the six months ended February 28, 2009 compared with $395.2 million for the prior-year period. The deterioration in gross profit and gross profit margin was largely attributable to overall volume declines and increased raw materials and component costs which were not recovered by benefits from higher price and richer product mix. The Company estimates that raw material and component costs increased approximately $34 million compared with the year-ago period of which only approximately half was recovered in higher prices. These factors were only partially offset by benefits from programs to improve productivity, delivery performance, and quality. The impact on gross profit from raw material and commodity costs not recovered through price and product mix is expected to continue to be unfavorable, although at a lower rate, for the remainder of the fiscal year.

This excerpt taken from the AYI 10-Q filed Jan 6, 2009.

Gross Profit

Gross profit margins decreased 120 basis points to 38.7% of net sales for the three months ended November 30, 2008 from 39.9% reported for the prior-year period. Gross profit decreased $28.5 million, or 14.0%, to $174.7 million for the three

 

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months ended November 30, 2008 compared with $203.2 million for the prior-year period. The deterioration in gross profit and gross profit margin was largely attributable to overall volume declines and significant increases in raw materials and component costs well ahead of fully realizing benefits from announced price increases designed to offset these higher costs. These factors were only partially offset by a greater mix of higher-margin products sold and benefits from programs to improve productivity, delivery performance, and quality. The Company estimates the increase in raw material and component costs negatively impacted cost of goods sold by approximately $17 million in the first quarter of fiscal 2009 compared to the year-ago period. These increased costs were only partially offset by higher price realization due to the timing of previously announced price increases. While certain raw material and component costs declined during the quarter, the Company’s gross profit has not yet benefited from these recent declines due to the lag resulting from the first-in, first-out basis used for valuing inventory. The higher raw material and commodity costs experienced during the latter part of fiscal 2008 and the first quarter of fiscal 2009 are expected to continue to negatively impact gross margin into the second fiscal quarter.

These excerpts taken from the AYI 10-K filed Oct 27, 2008.

Gross Profit

Gross
profit margins increased 240 basis points to 40.3% of net sales for fiscal 2008 from 37.9% reported for the prior-year period. Gross profit increased $71.5 million, or 9.6% to $815.8 million for fiscal 2008 compared with $744.3 million for the
prior-year period. The improvement in gross profit and gross profit margin was largely attributable to improved pricing and a greater mix of higher-margin products sold. In addition, benefits from the contribution of Mark Architectural Lighting and
programs to improve productivity and quality contributed to the increased profitability. These gains offset increases in costs for raw materials, components, and freight as well as increases associated with employee wages and related benefits and
freight costs.

Gross Profit

Gross profit margins increased to 37.9% of net sales in 2007 from 35.5% in 2006. Gross profit increased $91.5 million, or 14.0% to $744.3 million in 2007 compared with $652.8 million in 2006. The improvement in gross profit and gross profit margin was largely attributable to improved pricing, incremental margins on overall volume growth, and an enhanced mix of products sold including new, more energy efficient products introduced over the last three years. These gains more than offset raw materials and component cost increases in excess of $20 million as well as increases in costs associated with employee wages and related benefits.

This excerpt taken from the AYI 10-Q filed Jul 2, 2008.

Gross Profit

 

      Nine Months Ended
May 31,
    Increase    Percent
Change
 
(in millions)    2008     2007       

Net Sales

   $ 1,503.9     $ 1,424.4     $ 79.5    5.6 %

Cost of Products Sold

     900.5       890.2       10.3    1.2 %

Percent of net sales

     59.9 %     62.5 %     

Gross Profit

   $ 603.4     $ 534.2     $ 69.2    13.0 %

Percent of net sales

     40.1 %     37.5 %     

Gross profit margins increased 260 basis points to 40.1% of net sales for the nine months ended May 31, 2008 from 37.5% reported for the prior-year period. Gross profit increased $69.2 million, or 13.0% to $603.4 million for the nine months ended May 31, 2008 compared with $534.2 million for the prior-year period. The improvement in gross profit and gross profit margin was largely attributable to improved pricing, a greater mix of higher-margin products sold, incremental margins on overall volume growth, and the contribution of Mark Architectural Lighting. In addition, benefits from programs to improve productivity, delivery performance, and quality contributed to the increased profitability. These gains offset increases in raw material and component costs as well as increases associated with employee wages and related benefits and freight costs.

 

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This excerpt taken from the AYI 10-Q filed Apr 3, 2008.

Gross Profit

 

(in millions)

   Six Months Ended     Increase    Percent
Change
 
   February 29,
2008
    February 28,
2007
      

Net Sales

   $ 991.4     $ 922.0     $ 69.4    7.5 %

Cost of Products Sold

     596.2       576.4       19.8    3.4 %

Percent of net sales

     60.1 %     62.5 %     

Gross Profit

   $ 395.2     $ 345.5     $ 49.7    14.4 %

Percent of net sales

     39.9 %     37.5 %     

Gross profit margins increased 240 basis points to 39.9% of net sales for the six months ended February 29, 2008 from 37.5% reported for the prior-year period. Gross profit increased $49.7 million, or 14.4% to $395.2 million for the six months ended February 29, 2008 compared with $345.5 million for the prior-year period. The improvement in gross profit and gross profit margin was largely attributable to improved pricing, a greater mix of higher-margin products sold, incremental margins on overall volume growth, and the contribution of Mark Architectural Lighting. In addition, benefits from programs to improve productivity, delivery performance, and quality contributed to the increased profitability. These gains offset increases in raw materials and component costs as well as increases associated with employee wages and related benefits and freight costs.

 

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This excerpt taken from the AYI 10-Q filed Jan 8, 2008.

Gross Profit

 

(in millions)   

Three Months Ended

November 30,

    Increase    Percent
Change
 
   2007     2006       

Net Sales

   $  508.9     $  477.6     $  31.3    6.6 %

Cost of Products Sold

     305.7       297.1       8.6    2.9 %

Percent of net sales

     60.1 %     62.2 %     

Gross Profit

   $ 203.2     $ 180.5     $ 22.7    12.6 %

Percent of net sales

     39.9 %     37.8 %     

Gross profit margins increased 210 basis points to 39.9% of net sales for the three months ended November 30, 2007 from 37.8% reported for the prior-year period. Gross profit increased $22.7 million, or 12.6% to $203.2 million for the three months ended November 30, 2007 compared with $180.5 million for the prior-year period. The improvement in gross profit and gross profit margin was largely attributable to improved pricing, a greater mix of higher-margin products sold, incremental margins on overall volume growth, and the contribution of Mark Lighting. In addition, benefits from programs to improve productivity, delivery performance, and quality contributed to the increased profitability. These gains more than offset increases in raw materials and component costs as well as increases associated with employee wages and related benefits and freight costs.

This excerpt taken from the AYI 10-K filed Oct 30, 2007.

Gross Profit

Gross profit at ASP increased $5.4 million, or 1.7%, to $317.2 million in 2006 compared with $311.8 million in 2005. Gross profit benefited from the contributions of higher selling prices that resulted in ASP’s overall $17.1 million increase in net sales. Gross profit margins declined 80 basis points to 57.5% of net sales in fiscal 2006 from 58.3% reported in 2005. In fiscal 2006 gross profit and gross profit margin were negatively affected by continuing raw material and related freight cost increases. Costs associated with raw materials and related freight increased approximately $9 million in fiscal 2006 compared with fiscal 2005. These increased costs followed a fiscal year during which the costs of certain commodities utilized in ASP’s manufacturing process had already reached record highs. Also, increased costs for labor, waste disposal, and utilities adversely impacted gross profit and related margin by $2.1 million in fiscal 2006 compared with the prior fiscal year. Although the total dollar amount of the impact of certain of these factors was offset by higher selling prices, the gross profit margin percentage was reduced due to the magnitude of the above mentioned increases.

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