Building Materials Suppliers Hit in 3Q

ADVANCED SEARCH

READER'S CHOICE
Most Popular Stories

• Drago: Decision to Sell Family Business 'Didn't Come Easy'
• Supporting Multinational Customers Abroad: Anixter
• Parker Hannifin Makes Three Acquisitions
• Rockwell Automation Announces Restructuring
• Cardinal Health to Spin Off Clinical and Medical Products

HOME
ABOUT MDM
CONTACT US
CUSTOMER SERVICE

E-Mail This Article

Printer-Friendly Version

Related Articles from MDM

Huttig Building Products 3Q Sales Down 21%

MDM Blog: Economic Halloween?

Untitled Document

October 29, 2007

Building Materials Suppliers Hit in 3Q

Building Materials Holding Corporation, San Francisco, CA, a provider of construction services and building materials to residential builders and contractors, reported sales for the third quarter 2007 fell 24% to $618 million from $818 million in the same quarter a year ago. For the nine months, sales decreased 28% to $1.9 billion from the same period a year ago.

Profit for the third quarter 2007 decreased to $4.2 million from $35.3 million in the same quarter a year ago. Year-to-date, profit decreased to $18.6 million from $97.6 million in the same period a year ago.

"Our third quarter results reflect the continued deterioration of the homebuilding market. Throughout the quarter, negative macroeconomic factors such as declining housing permits, ongoing mortgage market difficulties and the substantial inventory of unsold homes have continued to impact participants in the homebuilding industry," said Robert E. Mellor, Chairman, president and CEO.

Builders FirstSource Inc., Dallas, TX, a supplier of structural and related building products for residential new construction in the U.S., reported sales in the third quarter 2007 were $413.9 million, down 27.3%. Builders FirstSource registered a net loss of $11.5 million in the quarter.

The supplier saw a $20.2 million decline in sales prices coupled with a $135.8 million decline in sales volume. Lower lumber and lumber sheet goods prices, a result of declining market prices and price concessions to customers, depressed sales by 3.5% while sales volume dropped 23.9% due to weakness in the housing market.

"During the third quarter we continued to face a challenging operating environment," said Floyd Sherman, Builders FirstSource CEO. "Housing start declines, due in part to the tightened credit standards in the mortgage industry, and lower market prices for lumber products combined to reduce our sales by an estimated 35% compared to last year. These macroeconomic factors were partially mitigated by our ability to grow market share and from sales provided by new operations."

More Breaking News