Building Materials Holding Corp. (BMHC) announced a net loss of $33.9 million for the three months ended March 31, compared to a $5 million loss for the same quarter last year. The company also announced it will be unifying its two major business units, BMC West and SelectBuild companies, in order to streamline operations. The company estimates the move will reduce expenses by $20 million to $25 million.
Net sales for the quarter were $355 million, down 37 percent from $599 million from last year.
“Challenging industry conditions continued across U.S. home-building markets during the first quarter,” said Robert Mellor, chairman and CEO.
Mellor also said that the company is working to realign its business to meet the current market conditions, which included reducing its work force by 20 percent during the quarter.
“We are conducting a comprehensive analysis of our business and developing an initial plan for improved profitability and cash flow to right-size the organization to reflect today's home-building market," Mellor said.
According to BMHC, the realignment will flatten the company’s organizational structure by reducing its existing 13 regions to seven: Intermountain (Colorado, Idaho, Montana, Utah), Midwest (Illinois), Northwest (Oregon, Washington), Pacific (California, Northern Nevada), Southeast (Florida), Southwest (Arizona, Southern Nevada) and Texas.
Company president and COO Stanley Wilson said the company intends to maintain the two unique brand identities, while taking advantage of the new synergies created by the realignment.
Along with the realignment, SelectBuild’s accounting, accounts payable, purchasing, payroll and information technology elements will be absorbed into the existing corporate structure.
BMHC also said that, upon the completion of the evaluation, it expects to shut down a number of underperforming business units, as well as consolidate some business units into other operations.
“With the centralization of administrative functions, the regional realignment and the closure or consolidation of certain business units we expect to be better positioned to focus our unified vision on maximizing operating efficiencies and growth opportunities for our core businesses,” said Mellor.