Beacon challenged in second quarter
Peabody, Mass.-based Beacon Roofing Supply posted a second-quarter net loss of $0.2 million, compared with net income of $3.1 million in the same quarter last year.
Sales increased 5.3% to $416.3 million in the quarter.
CEO Paul Isabella described the second quarter as "challenging."
He added: "We experienced harsh weather conditions in many of our markets, and we were up against a very strong second quarter last year when our existing market sales were up 28%."
The trend of residential roofing sales is looking up, he said. The company expects "a busines rebound following the tough winter and early spring conditions," he said.
In existing markets, residential and non-residential roofing product sales decreased 1.4% and 11.2%, respectively.
Union poster rule struck down
The National Lumber and Building Material Dealers Association (NLBMDA) applauded the decision by the U.S. Court of Appeals for the District of Columbia (D.C.) Circuit invalidating a National Labor Relations Board (NLRB) rule requiring nearly 6 million employers to post an 11-in.-by-17-in. notice regarding employee rights to unionize.
In its decision, the court held that the NLRB did not have the authority under the National Labor Relations Act to issue the poster rule.
Last spring the D.C. Circuit Court issued an injunction against the rule, two weeks before it was set to take effect, prohibiting the NLRB from requiring employers to comply with the regulation as the court considered an appeal of a lower court decision upholding the rule.
"NLBMDA agrees with the court’s ruling that the NLRB does not have the authority to issue the poster requirement," said Michael O’Brien, NLBMDA president and CEO. "The decision by the D.C. Circuit Court is welcome news and hopefully will help the NLRB strike a better balance between the rights of employers and employees.”
LP reports strong Q1
Louisiana-Pacific reported net sales of $538 million, an increase from $362 million in the first quarter of 2012. For the first quarter of 2013, LP reported income from continuing operations of $65 million, compared with a loss from continuing operations of $11 million for the first quarter of 2012.
“LP’s strong financial results were driven by a broad recovery of building activity across all regions of the U.S., which led to improved demand for our products and increased OSB pricing,” CEO Curt Stevens said. “In addition, our South America segment continued to perform well.”
The OSB segment reported net sales for the first quarter of 2013 of $287 million, an increase from $149 million of net sales in the first quarter of 2012. For the first quarter of 2013, the OSB segment reported operating income of $98 million compared with break-even results in the first quarter of 2012.
The Siding segment reported net sales of $134 million in the first quarter of 2013, an increase of 18 percent from $113 million in the year-ago first quarter. For the first quarter of 2013, the Siding segment reported operating income of $21 million compared to $17 million in the year-ago quarter.
EWP sales in the first quarter of 2013 totaled $63 million, an increase from $49 million reported a year ago. Operating losses were $4 million for the first quarter of 2013 compared to $3 million in the first quarter of 2012.
“I am confident that all of the work we have done to prepare for the housing upturn will allow us to meet customer demand,” added Stevens.