Boise, Idaho-based Boise Cascade Co. reported second-quarter sales of $852.3 million, up 16% over the same quarter last year.
Net income of $10.4 million was down from $15.0 million in last year's second quarter, as gross margins in the company's distribution segment were adversely affected by commodity prices.
“Commodity pricing for structural panels and lumber was stronger than the prior year quarter, contributing to improved operating performance in our Wood Products segment. However, gross margins in our Building Materials Distribution segment were negatively impacted by a steady downward trajectory in commodity prices during the second quarter of 2013,” said Tom Carlile, CEO. "In addition, we are pleased with our previously announced agreement to acquire two plywood plants in North and South Carolina. These facilities will complement our existing plywood and engineered wood manufacturing businesses and enable us to better serve our customers in the eastern and southeastern United States."
The company says it continues to experience demand below 20-year average historical levels for its products for the balance of 2013. However, "we remain optimistic that the recent improvement in demand for our products will continue."
The company added in a statement: "We expect to manage our production levels to our sales demand, which will likely result in operating some of our facilities below their capacity until demand improves further."