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Builders FirstSource Reports Net Loss in 1Q
April 24, 2008
Builders FirstSource, Inc., Dallas, TX, reported a net loss of $15.8 million on sales of $270.5 million for the first quarter ended March 31, 2008. Sales volume was down 32.8%.
The macroeconomic conditions that affect our industry have deteriorated for eight consecutive quarters. Housing starts in our markets fell 39.1% in the quarter ending March 2008 when compared to the quarter ending March 2007. On a sequential basis, actual housing starts in our markets were down an estimated 17.9%, but we saw a slight seasonal improvement in March," said Floyd Sherman, Builders FirstSource CEO.
"With the prolonged decline in macroeconomic conditions, we are experiencing pricing pressure from both our customers and competitors. As a result of these pricing pressures and the de-leveraging of our fixed costs within our manufacturing operations, we experienced a 310 basis point decline in margins."