LUMBERYARDS

Loss widens at BlueLinx Holdings

BY Ken Clark

Atlanta-based building products distribution giant BlueLinx Holdings is having some success in its emphasis on value-added specialty products, but it couldn’t hold off total sales declines in the second quarter.

BlueLinx posted a loss of $9.8 million in the quarter ended July 2, compared with a net loss of $3.4 million in the same quarter last year. Revenues declined 7.4% to $500.8 million.

While structural product sales declined 27.1%, the company pointed to growth of specialty product as an achievement — the category increased 10.7% in the quarter. CEO George Judd said the company successfully expanded its specialty products to more than 60% of total sales, and specialty product unit volumes increased 16.5% compared with a year ago — a new record for quarterly volume growth in the category.

"In addition, we generated solid margins in the face of competitive pricing pressures, demonstrated diligent cost management and delivered high-quality customer service," Judd said. "I am pleased to see our specialty business responding to our targeted growth initiatives."

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

POLLS

How much credit should be given to the co-op business model for the success of the independent hardware and building supply dealer over the last half century?
LUMBERYARDS

Wood products sales decline at Weyerhaeuser

BY Brae Canlen

Wood products producer Weyerhaeuser reported revenues of $1.64 billion for its second fiscal quarter, a 2% drop from $1.61 billion in revenues during the same period last year.

Sales in Weyerhaeuser’s wood products segment dropped 10.3% to $726 million from $809 million a year ago.

The Federal Way, Wash.-based company, which also operates divisions in timber sales, cellulose fibers and real estate, registered a profit of $10 million, compared with $14 million in the second quarter of 2011. Excluding one-time charges, earnings in the most recent quarter were $32 million.

Operating losses for the wood products division, which includes dimensional lumber, engineered wood products, oriented strand board (OSB) and plywood, were posted at $61 million in the second quarter of 2011, compared with a loss of $4 million a year earlier ago.

Excluding the sale of its hardwood products division, Weyerhaeuser said it anticipates “a comparable loss from the [wood products] segment in the third quarter." The company also said it "expects lower selling prices for lumber and oriented strand board and lower sales volumes across most product lines, offset by lower log costs and modest cost improvements."

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

POLLS

How much credit should be given to the co-op business model for the success of the independent hardware and building supply dealer over the last half century?
LUMBERYARDS

LBM company closes after 118 years

BY HBSDealer Staff

Norfolk Sash & Door, a supplier of windows, doors, molding and security hardware in Virginia’s Tidewaters area since 1893, closed its business on July 29, according to an article in the Virginian-Pilot.

Originally opened as a sawmill, the family-owned business grew into a full-service building materials supplier and moved into a Norfolk industrial park in 1961. Owner Howard Filer, whose grandfather bought the company with two other partners in the 1920s, blamed the prolonged housing downtown for the failure of the business. Demand for the doors, knobs, lumber and framing supplies the company sells has plummeted, he said. "There are no customers out there," Filer added.

Revenues dropped below $3 million last year, according to the newspaper, and Filer gave the business until June to improve. When that didn’t happen, Filer began calling construction yards in s 50-mile radius to look for jobs for his seven remaining employees.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

POLLS

How much credit should be given to the co-op business model for the success of the independent hardware and building supply dealer over the last half century?