Beacon Roofing Supply Sales Decline 11% in 2Q

Beacon Roofing Supply, Inc., Peabody, MA, reported sales in the second quarter 2007 dropped 11% to $286.9 million. The decline was partially offset by acquisitions made since the second quarter of last year.
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Declines occurred across three major product lines: residential, non-residential and complementary products. Complementary product sales declined the least at 5.1%.
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The existing market sales decline can be attributed to harsher winter conditions this year in the Northeast, Midwest and Canada, reduced new home construction activity in certain markets, and a flattening of inflation. In addition, Beacon reported a significant slowdown in reconstruction and reroofing activities in the markets that experienced damages from Hurricanes Katrina and Rita.
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The company incurred a net loss for the second quarter of $6.3 million compared to net income of $4.8 million in 2006.
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Year-to-date sales increased 0.7% to $667.2 million in 2007 from $662.3 million in 2006, reflecting a positive impact from acquisitions, mostly offset by a decline of 8.8% in existing market sales, with especially large decreases in residential roofing and complementary building product sales. When calculated on a per business day basis, first-half existing market sales declined 5.1% in 2007 from 2006.
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The first-half net income was $2.5 million in 2007, down from $17.7 million in 2006, a decrease of 86.1%.