BlueLinx Records Loss of $13.5 million in Third Quarter

By MDM Staff

November 5, 2009

More about: Building Materials/Construction

Declines for the building products distributor were closely tied to the 31% drop in housing starts in the U.S.

BlueLinx Holdings Inc. (NYSE:BXC), Atlanta, GA, a distributor of building products in North America, reported sales for the third quarter ended Oct. 3, 2009, were $449 million, down 38.2% from the same period a year ago. Overall unit volume fell 32%, primarily driven by a 31% decline in housing starts.

The company incurred a net loss of $13.5 million for the quarter, compared with a net loss of $2.6 million in the year-ago period.

"Although demand remains near all time lows, I believe that 2009 represents the bottom of this prolonged decline. Long-term demand for housing remains favorable and we are now focused on increasing our share of the market," said George Judd, president and CEO. "In spite of the weak structural product market, the Company produced gross margins of 12.3% which is significantly higher than historical margins."

For the nine months ended Oct. 3, net loss totaled $73.5 million, on sales of $1.28 billion, compared with a net loss of $6.6 million, on sales of $2.28 billion a year ago.

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