BFS reports $15.8 million loss
Builders FirstSource, the industry’s sixth largest pro dealer, posted a net loss of $15.8 million, in contrast to net income of $0.2 million for the first quarter of 2007.
The Dallas -based chain reported sales of $270.5 million for its first quarter, a decline of 34.2 percent over sales of $411.1 million in the same period last year.
In a prepared statement, Builders FirstSource said worsening industry conditions have resulted in pricing pressures from both customers and competitors with liquidity constraints, who are monetizing their inventories.
Commenting on the results, senior vp and CFO Charles Horn said: “We ended the quarter with over $210 million in liquidity. We used cash in operating activities during the quarter as we experienced a slight build in our inventories in March, as our sales per ship day increased 6.7 percent over December 2007 levels.”
The company’s outlook for 2008 includes a prediction of difficult market conditions and downward pressure on operating results, “at least through the first half of 2009.”
Builders FirstSource operates in 13 states, principally in the southern and eastern United States, with 66 lumberyards, many of them containing additional manufacturing facilities for trusses, windows, doors and custom millwork.
BlueTarp, Orgill announce partnership
BlueTarp Financial and hardlines distributor Orgill have announced a partnership to provide credit and financial services to independent hardware and home improvement retailers.
Denise Sullivan, Orgill’s retail programs manager, said the additional financial services are meant to help strengthen relationships between retailers and contractors.
“Retailers will be able to offer more credit to contractors while increasing their cash flow. BlueTarp takes over the backroom duties plus provides contractors with a 24/7 online tracking system and the ability to earn rewards for purchases,” she explained.
BlueTarp Financial, based in Charlotte, N.C., offers commercial trade credit services to more than 1,500 building material dealers and over 30,000 contractors across the United States and Canada. Memphis, Tenn.-based Orgill serves more than 5,000 customers worldwide.
Stanley Q1 sales and earnings up
New Britain, Conn.-based Stanley Works reported first-quarter net earnings of $68 million, up 0.6 percent from $67.6 million last year. Net sales were $1.09 billion, up 3.3 percent from $1.06 billion last year.
John Lundgren, chairman and CEO of Stanley Works, noted the company’s consumer DIY sales were flat, but the company’s industrial segment saw growth.
“Our Engineered Solutions business was strong, and of course we were helped by foreign exchange,” he said. A stronger performance outside the United States, particularly in Europe, helped offset some of the sales declines as well, he added.
The company saw flat revenues in consumer tools and storage, as well as in the company’s Bostitch business.
“The U.S continues to be adversely impacted by the residential construction market. That of course affects consumer tools and storage as well as Bostitch,” Lundgren added. “In North America those businesses were both down low single digits in terms of revenue.”