Building Materials Holding Corporation, San Francisco, CA, provider of construction services and building materials to professional residential builders and contractors, reported sales for the fourth quarter of 2006 decreased 26% to $608 million from $818 million in the same quarter a year ago. For the year ended Dec. 31, 2006, sales increased 11% to $3.2 billion from $2.9 billion in 2005.
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Net income for the fourth quarter of 2006 was $4.5 million compared to $33.5 million in the same quarter a year ago. For the year, net income was $102.1 million compared to $129.5 million in the same period of 2005.
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Robert E. Mellor, Chairman, President and CEO, said: Our fourth-quarter results reflect the ongoing correction of inventory levels which currently overhang the housing market. While our full-year results were the second best in our company’s history, the rapid deterioration of our markets during the second half of the year has made for a very challenging quarter as homebuilders curtail production while excess inventory is absorbed.
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We are focused on maintaining margins by leveraging our scale to reduce our costs and by continuing to build operating efficiencies. Macroeconomic factors including interest rates, employment and consumer confidence remain favorable and, as we enter 2007, we continue to believe in the long-term prospects for our business and the industry. We will maintain a measured and opportunistic approach to expanding our market share.
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