Exhibit 99.1

News Release

P. O. Box 1980

Winchester, VA 22604-8090

FOR IMMEDIATE RELEASE

Contact:   Glenn Eanes

Vice President and Treasurer

540-665-9100

AMERICAN WOODMARK CORPORATION

ANNOUNCES THIRD QUARTER RESULTS

DECLARES CASH DIVIDEND

Winchester, Virginia (February 23, 2005) — American Woodmark Corporation (Nasdaq/NM: AMWD) today announced results for the third quarter ended January 31, 2005, and declared its quarterly dividend.

Net sales increased 12% from the prior year to $183,175,000. The Company had previously issued forward guidance that anticipated net sales growth of 8% to 12% over prior year. The increase in sales was experienced in both the new construction and remodel sectors, and was principally driven by higher unit volume and improved product mix.

 

Gross profit was 18.8% of sales, down from 20.8% the previous year, due primarily to the impact of underutilized capacity on fixed and semi-fixed overhead costs and an increase in freight expense. The Company experienced unfavorable leverage on overhead costs as capacity expanded at a faster rate than short-term demand.  Freight expense increased as a percentage of sales, as a result of general industry factors including driver availability, general operating expenses and the high cost of fuel.   Labor costs declined as a percentage of sales due to improved productivity.   Material costs were flat as a percentage of sales, as the Company was able to offset the rising price of raw materials through activities such as material substitution and process changes.

Selling, general and administrative costs decreased to 12.5% of net sales from 13.0% the previous year, as increased promotional expenses were more than offset by ongoing cost management efforts, and lower costs associated with the Company’s pay-for-performance employee incentive plans.

Net income for the quarter declined 7% to $7,083,000, or $0.42 per diluted share, compared with net income of $7,650,000, or $0.46 per diluted share, in the prior year.

 

Looking forward to the fourth fiscal quarter ending April 30, 2005, the Company anticipates increased demand in both the new construction and remodeling markets. The Company currently expects net sales to increase between 15% and 20% over the prior year. The Company expects continued pressure on margins from rising material and freight costs, but expects margins to improve from the third quarter of the current fiscal year, due to increased utilization of capacity. Based on higher volumes and improved gross margins, the Company currently believes that net income for the fourth quarter of 2005 will be in the range of $0.53 to $0.59 per diluted share, versus $0.50 in fiscal 2004.

The Board of Directors has approved a quarterly cash dividend of $0.03 per share to be paid on March 24, 2005, to shareholders of record on March 10, 2005.

American Woodmark Corporation manufactures and distributes kitchen cabinets and vanities for the remodeling and new home construction markets. Its products are sold on a national basis directly to home centers, major builders and through a network of independent distributors. The Company presently operates fifteen manufacturing facilities and ten service centers across the country.

Safe harbor statement under the Private Securities Litigation Reform Act of 1995: All forward looking statements made by the Company involve material risks and uncertainties and are subject to change based on factors that may be beyond the Company’s control. Accordingly, the Company’s future performance and financial results may differ materially from those expressed or implied in any such forward looking statements. Such factors include, but are not limited to, those described in the Company’s filings with the Securities and Exchange Commission and the Annual Report to Shareholders. The Company does not undertake to publicly update or revise its forward looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.

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AMERICAN WOODMARK CORPORATION

Unaudited Financial Highlights

(in thousands, except share data)

Operating Results

	Three Months Ended January 31					Nine Months Ended January 31
	2005			2004		2005			2004
Net Sales	$	183,175		$	162,859	$	569,858		$	487,186
Cost of Sales & Distribution		148,794			129,054		453,937			385,014
Gross Profit		34,381			33,805		115,921			102,172
Sales & Marketing Expense		16,623			14,447		49,154			44,886
G&A Expense		6,215			6,789		20,724			18,552
Operating Income		11,543			12,569		46,043			38,734
Interest & Other (Income) Expense		(68	)		138		(86	)		471
Income Tax Expense		4,528			4,781		17,990			14,933
Net Income	$	7,083		$	7,650	$	28,139		$	23,330
Earnings Per Share:
Weighted Average Shares Outstanding – Diluted		16,989,909			16,651,232		16,896,086			16,645,360
Earnings Per Diluted Share	$	0.42		$	0.46	$	1.67		$	1.40

Balance Sheet
	January 31 2005		April 30 2004
Cash & Cash Equivalents	$	27,688	$	29,432
Customer Receivables		39,375		48,286
Inventories		58,884		54,921
Other Current Assets		16,498		12,019
Total Current Assets		142,445		144,658
Property, Plant & Equipment		183,177		143,136
Other Assets		20,806		19,257
Total Assets	$	346,428	$	307,051
Current Portion – Long-Term Debt	$	1,026	$	988
Accounts Payable & Accrued Expenses		73,345		74,332
Total Current Liabilities		74,371		75,320
Long-Term Debt		27,376		18,028
Other Liabilities		27,580		20,558
Total Liabilities		129,327		113,906
Stockholders’ Equity		217,101		193,145
Total Liabilities & Stockholders’ Equity	$	346,428	$	307,051