The 2020 Mid-Year Economic Update_long

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 ...

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.

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