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Building Materials Holding Corp. Hit by Housing Slowdown
October 24, 2006
Building Materials Holding Corporation, San Francisco, CA, provider of construction services and building materials to professional residential builders and contractors, today reported sales for the third quarter of 2006 increased 1% to $831 million from $820 million in the same quarter a year ago. For the nine months ended Sept. 30, 2006, sales increased 26% to $2.6 billion from $2.1 billion in the same period of 2005.
Net income for the third quarter of 2006 was $35.3 million compared to $41.6 million in the same quarter a year ago. For the nine months ended Sept. 30, 2006, net income was $97.6 million compared to $96.0 million in the same period of 2005.
Robert E. Mellor, chairman, president and CEO, said: "We clearly experienced the effects of a significant slowdown in the housing market and falling commodity wood prices. However, continued strength in certain key markets, including the Intermountain region and Texas and an improvement in our sales mix helped us maintain gross margins. During the quarter, we continued our emphasis on gaining market share and completed two acquisitions which have further diversified our operations. Overall, we are pleased with the results we have achieved year-to-date and we will continue to focus on the integration of the 14 acquisitions we completed during 2006 and 2005."