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Beacon Roofing Supply Inc. (NASDAQ: BECN) reported sales for the fiscal 2011 second quarter were up 3.8 percent to $296.3 million from the prior-year period. Organic sales were up 0.2 percent. The company reported a net loss for the quarter of $6.2 million.
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In existing markets, non-residential roofing and complementary product sales increased 13.7 percent and 6.9 percent, respectively, while residential roofing sales decreased 11.1 percent. Residential roofing sales continued to be especially weak in markets affected by storms in 2009 and were also affected by continued historically low levels of new home construction.
Total sales for the first half 2011 increased 7.4 percent to $701.1 million in 2011 from $653.1 million in 2010, while organic sales increased 3.8 percent. In existing markets, non-residential roofing and complementary product sales increased 13.5 percent and 10.1 percent, respectively, while residential roofing sales decreased 5.5 percent.
Net income for the first half was $3.9 million compared to $1.4 million in the first half of 2010.
Paul Isabella, president and CEO, said:: "Despite an even harsher winter in most of the northern U.S., we managed to beat last year's results. Our second quarter 2011 results did fall short of our expectations, but our first half results tracked close to our fiscal year 2011 plan and also ahead of last year's first half. We are encouraged because our gross margin continues to improve from last year and we again increased our cash holdings.
"Our commercial and complementary businesses continued to perform well but most of our regions experienced declines in their residential re-roofing businesses, which included the negative impact of a drop in average shingle prices. In addition, our operating income was unfavorably affected by an increase in our bad debt provision and by higher operating losses in our acquired markets. We feel we are well-positioned to benefit from an expected pick-up in volume and price increases in the second half of our fiscal year, and we remain comfortable with our full year expectations."