Builders FirstSource reports lower earnings in Q2
Builders FirstSource added its name to the list of companies that saw quarterly earnings drop due to the downturn in the housing market.
Net earnings for the supplier and manufacturer were $8.4 million, down 70.4 percent compared with $28.4 million last year. Sales were $465.1 million, down 27.6 percent from $642.4 million last year.
Acombination of lower housing starts and lower lumber prices led to the lower sales, said Floyd Sherman, CEO of Builders FirstSource.
“The negative impact of these macroeconomic factors was partially offset by profitably growing market share and continuing to focus on reducing operating costs,” Sherman said.
The company predicted difficult market conditions through 2008 and increased competitive pressures in the next year.
“We continue to react to the poor market conditions and adjust our operating expenses as necessary. Our selling, general and administrative expenses fell 15.5 percent,” said Charles Horn, senior vp and CFO for Builders FirstSource.
Based in Dallas, Builders FirstSource is a leading supplier and manufacturer of structural and related building products for residential new construction.
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.