Beacon reports 10.1% sales growth in Q1
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.”
Beazer Homes swings to a loss in Q1
Atlanta-based builder Beazer Homes posted a first-quarter net loss of $48.8 million, compared with net income of $48 million in the same quarter last year.
Sales were down 48% to $110.3 million in the first quarter, which ended Dec. 31.
"As we anticipated, conditions remained very challenging in the home-building sector during our first quarter," said Ian McCarthy, president and CEO of Beazer Homes, in a prepared statement. "Despite low interest rates and excellent home price affordability, demand for new homes remained at exceptionally low levels."
New home orders decreased 29.3% to 540, and the number of homes closed declined 43.6% to 527.
McCarthy said the company is hopeful that this year will bring a cyclical recovery to housing demand.
"While actual and potential foreclosures will likely keep home prices under pressure for some time, the steady increase in residential rents provides potential home buyers with an increasingly attractive option in homeownership," he said. "With no significant debt maturities until 2015, a very substantial cash position, an excellent finished lot position and improving home buyer sentiment, we believe we are well positioned to participate in the eventual housing recovery."
Delaware lumberyard closes after 75 years
Young Lumber, a dealer based in New Castle, Del., has closed, according to an article in The News Journal.
Founded in 1935, the family-owned business served builders in the Delaware, Philadelphia and New Jersey markets. In 2008, the company did $50.4 million in sales out of two locations, according to the Home Channel New Top 350 Pro Dealers Scorecard.
Company president Tom Shea, a third-generation owner, blamed falling housing starts and cash-flow problems for the lumberyards’ closure.