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.
Temple-Inland reports sales gains for full year and Q4
Austin, Texas-based Temple-Inland reported sales of building products for the fourth quarter were $146 million, up 12.3% from $130 million in the same quarter last year.
The building products and packaging company posted total 2010 earnings of $168 million, down 18.4% from $206 million in 2009. Excluding special items, net income was $100 million for the year, up from $78 million in 2009.
"In Building Products, despite housing markets that remained at depressed levels, we generated $22 million in EBITDA in 2010, an increase of $5 million compared with 2009," said chairman and CEO Doyle Simons. "We continue to benefit from our low-cost facilities, favorable geographic footprint and mix of products."
The Building Products division posted an operating loss of $19 million in 2010, compared with an operating loss of $27 million in 2009.
Building Products operating results improved in 2010 compared with 2009 primarily due to higher lumber prices and improved volumes for all products that were partially offset by higher input costs and lower gypsum pricing, the company said. Operating results declined in the fourth quarter of 2010 compared with the third quarter of 2010, due to lower gypsum prices and lower gypsum and lumber volumes.
Simon added that the company is focused on "generating cash and returning to profitability" in the building products division.
Total company sales for Temple-Inland were $952 million in the quarter and $3.799 billion for the year, increases of 12.7% and 6.2%, respectively.