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BlueLinx Holdings Inc., Atlanta, GA, distributor of building products in North America, reported revenues for the first quarter 2006 rose 1.8% to $1.38 billion from $1.35 billion for the first quarter 2005. The increase reflects a 15.7% increase in specialty product sales, partially offset by a 5.6% decline in structural product sales.
Specialty product sales were driven by a 14.9% increase in unit volume over the same period a year earlier. This unit-volume increase represented approximately 94% of the first-quarter specialty sales increase, with the remaining contribution resulting from higher prices. In structural products, declining product prices accounted for the majority of the sales decrease, while unit volume also was down slightly.
First-quarter net income rose to $9.8 million from $8.4 million for the same period a year ago.
"We made steady progress toward our primary strategic objectives during the first quarter," said CEO Stephen Macadam. "We accelerated growth of our specialty products business, increasing unit volume by 14.9% from the same period a year ago, and we effectively managed our structural inventory in a generally declining pricing environment.
"We are well positioned to continue to grow specialty product unit volume and effectively manage our structural product business," Macadam said. "We finished the first quarter with structural product inventories 16.8% below year-ago levels, and we are moving forward into the second quarter continuing to tightly manage our inventory levels. At the same time, we continue to execute on our primary strategic objective, which is to grow specialty product revenue to more than 60% of our total product mix."