Builders FirstSource added its name to the list of companies that saw quarterly earnings drop due to the downturn in the housing market.
Net earnings for the supplier and manufacturer were $8.4 million, down 70.4 percent compared with $28.4 million last year. Sales were $465.1 million, down 27.6 percent from $642.4 million last year.
Acombination of lower housing starts and lower lumber prices led to the lower sales, said Floyd Sherman, CEO of Builders FirstSource.
“The negative impact of these macroeconomic factors was partially offset by profitably growing market share and continuing to focus on reducing operating costs,” Sherman said.
The company predicted difficult market conditions through 2008 and increased competitive pressures in the next year.
“We continue to react to the poor market conditions and adjust our operating expenses as necessary. Our selling, general and administrative expenses fell 15.5 percent,” said Charles Horn, senior vp and CFO for Builders FirstSource.
Based in Dallas, Builders FirstSource is a leading supplier and manufacturer of structural and related building products for residential new construction.