Home » Beacon Roofing Supply Organic Sales Down 2.1%
Beacon Roofing Supply Organic Sales Down 2.1%
August 8, 2007
Beacon Roofing Supply, Inc., Peabody, MA, reported sales increased 19.1% to $484.9 million in the third quarter 2007 from the same period a year ago. The increase was primarily due to acquisitions.   ; Organic growth was down 2.1% due to an 8.1% decline in residential roofing sales. There have been continued lower levels of new home construction activities in most markets and flat-to-declining prices. In addition, there has been a significant slowdown in reconstruction and reroofing activities in the markets that experienced damages from Hurricanes Katrina and Rita.   ; Non-residential roofing and complementary product sales in existing markets increased 5.2% and 1.7%, respectively. There have been continued high levels of commercial construction activities in most of Beacon's markets. In addition, eight new branches were opened in existing markets since June 30, 2006.   ; The company's profit for the third quarter was $11.5 million compared with $17.1 million in the prior-year period.   ; In the first nine months, sales increased 7.7% to $1.15 billion in 2007, reflecting the positive impact from acquisitions, partially offset by a decline of 4.6% in organic sales, with large decreases in residential roofing and complementary building product sales.   ; Nine-month profit was $14 million, down from $34.7 million in 2006, a decrease of 59.8%.