Demand from China lifts Plum Creek
In its second quarter, timber company Plum Creek’s shipments of Oregon sawlogs to China went up 7%, compared with the first quarter. China now accounts for 27% of such logs, and Plum Creek CEO Rick Holley sees this relationship as a new status quo.
"While we expect that Chinese demand will exhibit some volatility from time to time, we believe their presence in the North American market is a lasting one that adds a relevant source of demand to West Coast log and lumber markets," Holley told investors.
He added that the combination of offshore demand and reductions in future Canadian supply are going to have a big impact on the trade balance, "which is positive for Plum Creek."
Back here in the United States, Holley described demand rising slowly, despite a housing recovery that has been "much more anemic than anyone anticipated."
Reaching 600,000 housing starts in 2011 is questionable, he said, but housing starts in the 700,000 to 750,000 range is likely for 2012. While much depends on the actions of lawmakers in Washington, D.C., he added: "Clearly, it will be better next year than this year," Holley said.
The Seattle-based company reported earnings of $44 million in the second quarter, up from $35 million in the same quarter last year. Sales increased to $284 million, up from $258 million.
BASF executive elected president of trade group
Jim Doyle, district sales manager for the southeastern region of BASF’s Wall Systems business, has been elected as the new president of the Florida Wall & Ceiling Contractors Association (FWCCA).
Doyle has been an active member of FWCCA since its inception in 1982 and has been on the board of directors for the past three years. In 2005, he was recognized with the FWCCA Lifetime Support Award.
Doyle stated he will focus on two key objectives for the association in the upcoming year.
The first will be to advance the educational program for contractors and architects. The mission of the program, he said, will be “to promote the wall and ceiling industry to the contractor and architectural community.” The second key objective is to provide services and undertake activities that enhance the members’ ability to operate a successful business.
FWCCA, an affiliate of the Association of the Wall and Ceilings Industry (AWCI), represents the needs and concerns of Florida contractors in the wall and ceiling industry. It is supported by any company, person or partnership engaged in and/or supplying materials, equipment or ancillary services to the wall and ceiling industry within the state of Florida.
BASF’s Construction Chemicals division is a leading supplier of chemical systems and formulations for the construction industry. Its products include a wide range of items used in sports and industrial flooring, external renders and wall insulation, expansion joints, wood preservatives, as well as specialist repair mortars, tile adhesives and waterproofing membranes.
BlueLinx completes $60 million stock offering
BlueLinx Holdings has raised approximately $58.5 million after investors fully subscribed to a $60 million rights offering that expired on July 22. Following the issuance of the newly subscribed shares, which is expected to occur on or about July 28, 2011, BlueLinx will have approximately 61.8 million total shares outstanding.
Cerberus ABP Investor will remain the majority stockholder, owning approximately 55% of BlueLinx’ common stock.
When BlueLinx first announced the offering in April, the Atlanta distributor said it would use any proceeds to pay down debt and also fund capital improvements.
Commenting on the announcement, BlueLinx president and CEO George Judd stated: "We are pleased with the results of the offering and are grateful to our stockholders for their continued support."