BMHC earnings, sales fall in Q2
Building Materials Holding Corp. (BMHC) reported second-quarter earnings of $19.4 million, down 44 percent from $34.2 million in the same quarter last year. The results included a $5.7 million gain from the sale of real estate, due to the relocation of a building materials operation in Texas.
Sales for the quarter were $697 million, down 24 percent from $922 million last year.
“Market conditions remained very challenging during the second quarter, with year-over-year comparisons continuing to reflect the sharp correction occurring in the home-building sector,” said Robert Mellor, chairman, president and CEO of BMHC. “We continue to adjust our operating costs to current levels of regional home-building activity while maintaining a strong commitment to preserving our service levels to customers.”
Sales in the company’s BMC West division were $340 million, down 19 percent from $420 million last year. Income from BMC West operations was $33.2 million, a decrease of 15 percent from $39.2 million in the same quarter of 2006.
In the company’s construction services business, SelectBuild, sales decreased 29 percent to $357 million from $502 million last year. Income from SelectBuild operations was $15.7 million, down 67 percent from $47.1 million last year.
BMHC had sales of $3.2 billion in 2006.
Beazer swings to loss in the third quarter
Atlanta-based home builder Beazer Homes reported a third-quarter loss of $123 million, down from earnings of $102.6 million in last year’s third quarter.
The company saw sales fall 36.6 percent to $761 million from $1.2 billion last year.
The company took charges of $188.5 million for inventory impairments and for abandoning some land option contracts. Home closings fell to 2,666 homes compared with 4,156 homes last year. New orders also fell to 3,055 homes from 4,378 homes last year.
“Operating conditions in the housing industry deteriorated further in the fiscal third quarter and remain very challenging,” said president and CEO Ian McCarthy. “Most housing markets across the country continue to be characterized by an oversupply of both new and resale home inventory, reduced levels of consumer demand for new homes and aggressive price competition among home builders.”
Beazer Homes is one of the country’s largest single-family home builders with operations in 22 states.