BlueLinx reports lower Q2
BlueLinx Holdings, the Atlanta-based building distributor, reported $1.08 billion in revenues for its second quarter, which ended on June 30. This reflects a 21.5 percent decline when compared to revenues of $1.38 billion for the corresponding period a year ago.
Net income for the second quarter was $5.4 million, compared to $9.6 million a year ago.
For the first six months of the fiscal year, the company’s sales were $2.04 billion, compared to $2.76 billion in the same period a year ago. Net income for the six-month period totaled $5.2 million, compared to $19.4 million during the first six months of fiscal 2006.
“The ongoing correction in the housing market continued to weigh on much of our business during the quarter,” said Stephen Macadam, CEO of BlueLinx. “This challenging environment is continuing into the second half of 2007, and we do not see any signs of recovery on the horizon for our housing related business.”
Black & Decker second-quarter earnings down
Tool giant Black & Decker recorded second-quarter net earnings of $118 million, down 22.4 percent from $152.2 million in the same period last year. The earnings were at the high end of the company’s corporate guidance, according to a statement.
Sales were flat compared with last year at $1.7 billion.
“Black & Decker met our earnings expectations in the second quarter despite persistent challenges in the U.S. residential construction sector,” said Nolan Archibald, chairman and CEO. “Our international divisions…continued to deliver outstanding results, partially offsetting the domestic headwinds.”
Archibald said sales from the company’s power tools and accessories segment decreased 2 percent, while the company’s Price Pfister faucet business gained market share and grew sales at a double-digit rate.
“The Asian business and European industrial division continued to grow,” he added.
Archibald said the company predicts a continued weak housing industry “and significant commodity inflation [that] will continue to adversely affect our earnings comparisons.”
Litigation session scheduled for ProDealer Conference
Sam McDermott, a partner with Wood, Smith, Henning & Berman, will conduct a roundtable discussion on litigation risks at the 11th annual ProDealer Conference. His session is scheduled for Sept. 20.
McDermott specializes in defending LBM dealers, builders and contractors in mold-related claims, construction defect lawsuits and other liability issues. His presentation will address risk management items as well as insurance issues and how to respond to a lawsuit.
The ProDealer Conference, sponsored by Home Channel News, is scheduled for Sept. 19 to 21 at Loews Coronado Bay Hotel in San Diego. Networking events will include a night at the Padres game and a City of Hope golf tournament. For more information, visit www.prodealer.com.