First-quarter sales for Peabody, Mass.-based Beacon Roofing Supply increased 10.1% to $404.8 million, the company announced this morning, but most of the gains came in non-residential projects.
Net income for the quarter ended Dec. 31 was $10.1 million, up 28.4% from $7.8 million in the first quarter of 2010.
“Our first-quarter 2011 results exceeded our expectations," said Paul Isabella, Beacon president and CEO. "Our commercial and complementary businesses bounced back well from low prior-year levels, and some of our regions experienced healthy gains in residential business as well."
Non-residential roofing and complementary product sales in existing markets increased 13.6% and 12.1%, respectively, while residential roofing sales decreased 0.8%. Residential roofing sales continued to be especially weak in markets affected by storms in 2009, the company said.
Residential roofing amounted to $172.0 million in sales, and 43.9% of Beacon's overall sales mix. In the first quarter of last year, residential roofing accounted for 47.2% of the sales mix.
"We continued to tightly control our operating expenses, and we increased our cash holdings by another $59 million in the first quarter," Isabella said. "Our gross margin improved significantly from recent quarters, and we are optimistic about fiscal year 2011 based on the good start to the year.”