Changes affecting Cornerstone Building Products
To identify company challenges, senior leadership movements, current strategic initiatives, operational changes, manufacturing footprint, recent investments, M&A activity, and financial performance of Cornerstone Building Brands.
- The nature of the industry in which the company operates is "cyclical and highly sensitive to macroeconomic conditions." The industry is experiencing a downturn, which has the potential to adversely impact the business if things continue to be the way they currently are.
- The state of uncertainty in the financial markets is another challenge facing the company.
- The company plans to "focus on leveraging technology, automation and supply chain efficiencies to be one of the lowest cost producers, reduce engineering, selling, general and administrative (“ESG&A”) expenses and improve plant utilization through expanded use of [their] integrated business model and facility re-alignment. To further distinguish the value of [their] products and services, [their] manufacturing platform has been reorganized into a single, integrated organization, to rapidly incorporate the benefits of lean manufacturing best practices and efficiencies across all of [their] facilities."
Manufacturing Facilities Expansion
- The chairman and CEO at Cornerstone Building Brands, James S. Metcalf, said that the current "operational and integration focus is on captial investment in manufacturing facility upgrades, on cross-pollinating enterprise skill-sets--i.e. iterative mergers and acquisition, integration, and lean execution chops on from the NCI genome and product, design, and installation innovation from the Ply Gem DNA--and on growing the business."
- The company will invest "invest 2% to 2.5% of sales revenue in capital expenditures to tool facilities for greater automation in light of chronic and worsening labor capacitiy constraints, both to increase quality, velocity, and efficiency in getting products to customers."
- The company generated a revenue of $2 billion in 2018.
- The company accrued earnings of $83 million before taxes.
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