HIRI study shows rise in projects
The latest update from the Home Improvement Research Institute on consumer spending patterns shows homeowners are planning 3.4% more projects around the house than they were planning a year ago.
The stat reflects total projects planned per 100 homeowners, which increased from 314 to 328.
The year-over-year increase in project planning follows three consecutive quarters of declines of the metric.
Designed to be a leading indicator of industry activity, the HIRI sentiment tracking quarterly report has been tracking the trends since October 2012.
Other topline findings from the HIRI July 2014 Home Improvement Sentiment Tracking study:
• Project planning incidence increased to 74.5% of homeowners, up from 71.2% a year ago.
* Lawn projects take up more than a third of all projects – 33.9%.
• Deck, patio and porch projects are increasing compared to a year ago, and represent 26.7% of projects planned.
* Anticipated remodeling or improvement of the kitchen area declied, but still represents 16.4% of planed projects.
For more information, visit HIRI.org.
Beacon points to ‘record third-quarter sales’
Beacon Roofing Supply reported what it referred to as "record third-quarter sales," which were up 5.8% year-over-year.
Net sales for the three months ended June 30, 2014, totaled $663.4 million, compared with $627.2 million in the same period last year.
Net income came in at $26.8 million, down slightly from $27.2 million year-over-year. The company’s bottom line was negatively impacted by lower gross margins from reduced selling prices.
The third quarter diluted EPS was also down slightly — weighing in at $0.54 (compared to $0.55 in 2013).
President and CEO Paul Isabella commented on Beacon’s progress during the quarter, acknowledging a weak gross margin and challenging residential market overall that’s been driving prices down. However, the outlook is optimistic, especially with current levels of seasonal demand.
“We delivered a solid 5.8% growth for the quarter, even in the face of continued soft residential roofing demand," said president and CEO Paul Isabella. "Our diversified product offering allowed us to take advantage of the strength of the current commercial roofing market. In addition, our investment in new branch openings continues to fuel our growth. Approximately half of our growth in the quarter came from new branch openings, and we expect these to add even more volume in the future."