Double-digit sales rise for Beacon Supply in 2012
Beacon Roofing Supply, one of the nation’s largest distributors of roofing, siding and other exterior building products, reported sales of $598.1 million for its fourth fiscal quarter, a 3.9% increase from sales of $575.6 million in the same period a year ago. Existing market sales, which exclude branches acquired after the beginning of the quarter, declined 5.6%. In existing markets, residential and non-residential roofing product sales decreased 3.3% and 10.5%, respectively, while complementary product sales increased 1.2%. This year’s fourth-quarter sales were primarily impacted by lower roofing activity in the markets affected by last year’s hail storms, partially offset by the benefit of slightly higher overall average selling prices.
Net income for the fourth quarter, which ended Sept. 30, was $27.9 million compared with $31.3 million in 2011.
In year-round figures, total sales increased 12.5% to $2.04 billion in 2012 from $1.82 billion in 2011. Existing market sales increased 6.3% (7.6% based on the same number of business days). Residential and non-residential roofing product sales in existing markets increased 11.8% and 2.3%, respectively, while complementary product sales declined 0.4%. Annual sales were favorably impacted by increased re-roofing and remodeling activities in the first half of the this year, including the impact from improved weather conditions and stronger business in several markets that experienced significant storms during the course of last fiscal year, and by higher average selling prices.
Annual net income was $75.6 million in 2012 compared with $59.2 million in 2011.
Paul Isabella, president and CEO of the Peabody, Mass.-based company, said in a prepared statement: "We are very pleased with our record quarter and annual 2012 results, which exceeded our expectations. Our total sales benefited from the positive impact of acquisitions and from a 6% increase in existing market sales for the year. The adjusted fourth-quarter net income exceeded last year’s adjusted net income, even though we were facing a very challenging comparison to last year’s fourth quarter, when there were substantial roofing activities from hail storms. We are confident in the long-term growth opportunities available in our industry and are actively investing to realize those opportunities, such as with our most recent acquisition of McClure-Johnston."
LP to Buy Canfor’s share in OSB joint venture
Louisiana-Pacific Corp. has entered into an agreement with Canfor Corp. to acquire Canfor’s 50% share in the Peace Valley Oriented Strand Board (OSB) joint venture in Fort St. John, British Columbia. By completing this acquisition, LP will become the sole owner of the Peace Valley OSB mill.
“The Peace Valley mill has been a safe, productive and important part of our OSB strategy for the past seven years,” LP CEO Curt Stevens said. “The mill will continue to play an important role in LP as the housing market rebounds.”
The purchase price is estimated at C$75 million, including working capital. In addition, Canfor may receive additional annual consideration over a three-year period based on Peace Valley OSB’s annual EBITDA.
LP and Canfor currently jointly run the mill, with LP providing operational support while Canfor provides labor, fiber resource management and administrative services. LP already sells 100% of the product made there under the LP brand, so customers will see no change in product quality or service.
Once the agreement closes, Canfor will continue to provide fiber resource management and temporarily provide administrative services during the transition.
The completion of this transaction is expected to occur by the end of this year, but is subject to the parties agreeing to final terms and conditions, the completion of due diligence, obtaining necessary regulatory approvals and the execution of definitive agreements.
The Peace Valley mill has an annual production capacity of 820 million sq. ft. of OSB. It currently operates three shifts with plans to add a fourth shift in the first quarter of 2013 depending on market conditions.
USG wins OSHA recognition
USG Corp. has achieved the prestigious Voluntary Protection Program (VPP) Star designation from the Occupational Safety and Health Administration (OSHA) at its Galena Park, Texas, manufacturing plant. Officials from OSHA presented the award on Nov. 29 to USG Galena Park’s 150 employees during a ceremony at the plant.
The Star is the highest recognition within OSHA’s Voluntary Protection Program. To achieve it, employees, management and OSHA work together to implement safety and health programs and processes that go beyond OSHA regulations to further protect employees and promote safe operations. There are fewer than 2,500 worksites out of 8 million in all of the United States that hold the Star designation.
The Galena Park plant has an exceptional safety record, working more than 8,500 consecutive days without lost-time injury and more than 8.5 million worked hours since the last workday incident.
“The Galena Park plant has a history of everyone working well as a team and focused on safety above everything else,” said Van Newcomer, plant manager. “This accomplishment validates our hard work and commitment to safety excellence. We are happy to be working in partnership with OSHA to ensure that we continue to uphold the highest standards in safety.”
USG began operations in Galena Park in 1956, first with the paper mill, followed by the board line in 1959 and joint treatment in 1997. The plant manufactures USG’s industry-leading Sheetrock brand gypsum panels, which are distributed throughout metropolitan Houston, South Texas and Southern Louisiana.
“Employees here and across the company buy into our core value of safety and own it,” said Don Schaefer, director, Safety and Fleet Operations. “At USG, we want to ensure safety remains the top priority, and the OSHA VPP Star is just one more step in the right direction to keeping our employees safe.”
USG and its distribution subsidiary, L&W Supply Corp., are recognized as industry leaders in safety. USG was a founding member of the National Safety Council, which started in 1914, almost 50 years before OSHA was founded. As a testament to the company’s safety focus, 12 of USG’s manufacturing plants and two L&W Supply branches are OSHA VPP Star worksites.