Beacon Roofing Supply Records Net Loss in First Half - Modern Distribution Management

Log In

Beacon Roofing Supply Records Net Loss in First Half

Roofing supplies distributor Beacon Roofing Supply, Inc., Peabody, MA, reported sales in its first half were up 5.3% to $702.6 million from the same period a year ago. Growth was due to acquisitions. Sales in existing markets fell 9.8%.
 
Beacon recorded a net loss for the first half of $2.9 million, compared with profit of $2.5 million in 2007.
 
Robert Buck, CEO, said: Our second quarter sales and profits remained below our goals and we certainly are disappointed with the first half net loss. However, gross margins in our existing markets appear to be stabilizing and we are seeing additional benefits from our cost containment measures.
 
"We continuously evaluate the performance and projections of every one of our branches and regions as we look to ...
Author
Date

Roofing supplies distributor Beacon Roofing Supply, Inc., Peabody, MA, reported sales in its first half were up 5.3% to $702.6 million from the same period a year ago. Growth was due to acquisitions. Sales in existing markets fell 9.8%.
 
Beacon recorded a net loss for the first half of $2.9 million, compared with profit of $2.5 million in 2007.
 
Robert Buck, CEO, said: Our second quarter sales and profits remained below our goals and we certainly are disappointed with the first half net loss. However, gross margins in our existing markets appear to be stabilizing and we are seeing additional benefits from our cost containment measures.
 
“We continuously evaluate the performance and projections of every one of our branches and regions as we look to improve or close unprofitable branches. We will also seek additional expense reduction opportunities. However, as we progress into our seasonally stronger period for sales, we are cautiously optimistic about the second half of our 2008 fiscal year.”
 
In the second quarter sales were up 6% to $304.3 million from the same period a year ago. This increase was due to acquisitions. Organic sales were down 6.7% in the second quarter.
 
The distributor recorded a net loss for the second quarter of $8.1 million.
 
Beacon operates 177 branches in 35 states in the U.S. and Eastern Canada.

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.