Builders FirstSource posts inflation-aided sales gain
Dallas-based Builders FirstSource saw sales surge in the first quarter — up 45.7% to $319.7 million.
"We were able to achieve top-line growth of greater than 30% for a sixth consecutive quarter," said CEO Floyd Sherman. "Our sales increase once again exceeded the increase in residential construction activity, as actual single-family housing starts in the South Region increased 27.4% and single-family units under construction increased 23.2%."
Despite the top-line success, the company faced downward pressure on margins due to rising prices of commodity lumber, according to Chad Crow, senior VP and CFO. "While we were able to obtain price increases from many of our customers during the quarter, they were not enough to offset the continued commodity price inflation," he said.
Net loss for the first quarter of 2013 was $11.8 million, compared with a net loss of $19.2 million in the first quarter of 2012.
Sherman added: "We are excited about the prospects for the home-building industry, and the outlook continues to suggest favorable opportunities for Builders FirstSource. The National Association of Homebuilders is now predicting a 24.2% increase in single-family housing starts for 2013, and an additional 28.8% increase in 2014. We believe Builders FirstSource is well positioned to take advantage of this recovery. Our strategy remains focused on increasing our market share and improving our operating margins as we move into the spring and summer building season."
Lumberyard hits six-decade milestone
Cascade, Iowa-based Cascade Lumber Company, a family-owned and operated retail lumberyard, is celebrating its 60th year of operation in 2013. Operating from a single location in eastern Iowa, Cascade Lumber operates a lumberyard in addition to a full-service home center serving retail and contactor customers. In addition, floor covering sales and installation are conducted from the Cascade location and a second outlet in nearby Monticello, Iowa.
Cascade Lumber Company has a subsidiary company, Cascade Manufacturing Company, which furnishes wood and cold-formed steel truss and wall panels for residential, commercial and agricultural projects throughout the Midwest.
The yard is holding a Founders Day Friday, May 17, which is for the community and customers. And an employee appreciation day with new and former emplyoyees is set for Sunday, May 19.
Cascade Manufacturing also operates an engineered wood distribution center carrying a complete line of I-joists, LVL and LSL products.
The diversity in products and markets has allowed for continued growth during the company’s 60-year history.
New hires at Snavely Forest Products
The company announced the addition of Lena Rink, typar specialist; David Cunningham, operations manager; and John Owens, inside sales representative.
Rink joins Snavely with more than 12 years experience in the building products industry. She brings valuable experience from Casco Industries, Bradco Supply Corp., and most recently SPEC Building Materials, according to the company.
David Cunningham brings with him 30-plus years of operations management experience from Foxworth-Galbraith.
John Owens, relatively new to the building products industry, has extensive knowledge of industrial fasteners from his experience at Fastenal and is a recent graduate of Texas State University.