Revenues, income drop for Builders FirstSource

Builders FirstSource, one of the industry’s largest pro dealers, reported sales of $180.4 million for its third fiscal quarter, a decrease of 4.5% compared with sales of $188.9 million in the same period last year.

The company estimated that sales increased 5.6% due to commodity inflation, but decreased approximately 10% due to volume and competitive pricing pressure.

Net loss for the Dallas-based pro dealer was $20.5 million, compared with a net loss of $15.2 million a year ago.

During the current quarter, which ended Sept. 30, 2010, the company temporarily idled four manufacturing facilities, two in Maryland and two in Florida, and two distribution centers in South Carolina, in order to reduce operating expenses and excess capacity. Most of the customer demand from these idled facilities will be served by other existing locations within the market, the company said.

In a prepared statement, company CEO Floyd Sherman said: “Though the volatility in the commodity markets has subsided, current market conditions remain difficult, and we expect this to persist into 2011. We remain committed to our proven strategy of conserving liquidity while monitoring, and adjusting as necessary, physical capacity and staffing levels.

“As expected, seasonal reductions in working capital helped reduce our use of cash during the quarter. We still believe our liquidity at year-end will range from $100 million to $110 million. While we do not expect 2011 to be a robust year of new-home construction, we are hopeful we will see some improvement over 2010, and that 2011 will signal the beginning of a sustained recovery.”

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