BlueLinx Holdings swings to loss
Amid numerous restructuring programs, Atlanta-based distributor BlueLinx Holdings posted a net loss of $3.2 million in the third quarter ended Sept. 28. In the same quarter last year, the company posted earnings of $3.1 million.
Revenues for the fiscal third quarter increased 12.3% to $558.0 million from $496.8 million for the same period a year ago. Overall unit volume increased 11.9% compared with the same period a year ago.
Gross profit for the fiscal third quarter totaled $62.5 million, up 3.2% from $60.5 million in the year-ago period. Gross margins were 11.2% compared with 12.2% a year ago. Overall gross margins were impacted by a higher mix of lower-margin structural sales, low margin sales related to the closure of five distribution centers, and a highly competitive pricing environment. Same center gross margins were 11.5% compared with 12.1% a year ago.
"The implementation of the company’s previously announced restructuring program is proceeding as planned, and sales and operational initiatives are having a positive impact," said BlueLinx executive chairman Howard Cohen. "Despite the restructuring this quarter, the company achieved a significant improvement in same center results. We have regained sales growth momentum in higher margin specialty products, which grew 11.7% on a same center basis and increased the company’s adjusted EBITDA by $3.3 million or 118%.”
Cohen also said efforts to reduce costs and simplify the organization helped improve same-center performance.
/* Style Definitions */
mso-padding-alt:0in 5.4pt 0in 5.4pt;
font-family:”Times New Roman”;
mso-fareast-font-family:”Times New Roman”;
At NyloBoard, difference is in the fiber
NyloBoard’s composite wood alternative was among the more perplexing products on display at the ProDealer Industry Summit in Nashville.
The display sample, what appeared to be a wood slab growing out of a snarl of carpet fiber, demonstrated its patented production process.
Touted as the "non-composite composite," NyloDeck (NyloBoard’s decking product) uses recycled carpet fiber, combined with proprietary resins, an e-glass fabric and UV protection, to provide a hardier alternative to composite wood or wood deck materials. It is not only impervious to rot or swelling — with the best expansion and contraction rating of all composites, according to the company — but it’s also resistant to water, mold, mildew, termites and stains, according to the company.
NyloDeck also provides an eco-friendly alternative in its ability to divert materials from overburdened landfills — as well as save a few trees.
The materials are all sourced in the U.S. and produced at the company’s manufacturing facility in Covington, Ga.
Fortune Brands makes two VP appointments
Fortune Brands Home & Security has named Jason Baab VP of mergers and acquisitions, as well as Elif Sagsen-Ercel as VP strategy.
Baab will be leaving his role as director of business development at Goodyear Tire & Rubber Company. As VP M&A, he will oversee the company’s growth strategy and portfolio expansion initiatives via the acquisition pipeline.
“Jason brings a wealth of strong corporate and operating company deal experience both domestically and internationally,” said Chuck Elias. “He is a great addition to the team as we look to strengthen our market-leading brands and operating companies globally to create shareholder value.”
Sagsen-Ercel has been promoted from her current role as senior director of strategy. She is credited with playing a large role in the development of the company’s portfolio strategy and various operating company strategies.
She has been with the company since July; previously, she oversaw strategic planning and innovation at Hillshire Brands. Her C.V. also includes a role as senior director of strategy and corporate development for Sara Lee.
The two will report to Chuck Elias, who was recently elected SVP strategy and corporate development.