BlueLinx Holdings Inc., Atlanta, GA, distributor of building products in North America, reported profit in the second quarter ended June 30, 2007, of $5.4 million, compared with profit of $9.6 million in the prior-year period.
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Sales fell 21.5% to $1.08 billion in the second quarter. The decline reflects a 25.1% drop in structural product sales and a 17% sales decline in specialty products. About two-thirds of the sales decline in structural products resulted from unit volume, which fell 17.1% from a year ago. The specialty products sales decrease was largely due to unit volume, which declined 15.3%.
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Overall second-quarter unit volume for the company’s estimated weighted end-use markets fell 12.8% from the prior year, driven by a 21.8% decline in housing starts and an 18.8% decline in manufactured housing.
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For the six months ended June 30, 2007, profit was $5.2 million on revenues of $2.04 billion, compared with revenues of $2.76 billion a year ago. Declines were due to reduced unit volume and prices resulting from the demand slowdown in new-home construction.
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The ongoing correction in the housing market continued to weigh on much of our business during the quarter,” said CEO Stephen Macadam. “We continued to operate in a weak but generally stable business environment. In addition, wood-based structural product prices firmed somewhat during the quarter, with the average quarterly price for key grades rising about 10% from the first quarter of this year, after deteriorating continually during 2006. Despite the rise, we do not expect a prolonged price increase until more sustained demand returns with the eventual recovery of the housing sector.”
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BlueLinx reported it does not see any signs of recovery on the horizon for its housing-related business.
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BlueLinx operates its distribution business from sales centers in Atlanta and Denver, and its network of more than 70 warehouses.