More details on Stock branch closings
Last week’s announcement of a major consolidation at Stock Building Supply has set off much speculation about which 86 branches will be closed as part of the restructuring. Wolseley, Stock’s parent company, said it was leaving 16 markets in six states but gave no specific locations, other than “Louisiana, where [Stock] does not have a significant presence.”
Since then, Home Channel News has obtained a preliminary list of the closings. Upon request, the communications office of Wolseley’s North American division provided the following list of 15 locations slated to be closed:
• Bakersfield, Santa Barbara and San Bernardino, Calif. (Stock will still have locations in the Los Angeles market.)
• Dover, Del.
• Ft. Myers, Jacksonville, Panama City and Pompano, Fla.
• Frankfurt and Lexington, Ky. (Frankfurt customers can be served from the Louisville location.)
• Gulf Coast, La.
• Grand Rapids, Mich.
• Reno, Nev.
• Mission, Texas
Wolseley has given no timeline for closing all 86 branches, which will leave Stock with 209 locations in 27 states. In an Oct. 23 analyst conference call following the announcement, Wolseley CEO Chip Hornsby said: “Our intent is to move pretty rapidly. It’s already being put into place.”
“We are holding on to the operations where we are No. 1 or No. 2 in the markets,” Hornsby continued. Listed as Stock’s “top states” were North Carolina, South Carolina, Florida, Texas, California and Utah.
Builders FirstSource posts $19 million loss
Builders FirstSource reported a net loss of $18.9 million for its third quarter, which ended Sept. 30, 2008, an improvement over the previous quarter’s loss of $45.9 million. The net loss for the third quarter of 2007 was $12 million.
Sales for the third fiscal quarter were $288.3 million, a 30.3 percent drop from sales of $413.9 million in the same quarter last year.
The company said it closed two facilities during the third quarter, although it did not specify where. Last week, Builders FirstSource announced it had exited the New Jersey market by shuttering five facilities: a distribution center, a manufacturing facility and three showrooms. Altogether, these closures will add $5 million to $7 million in liquidity in 2009, according to the company.
“We are more than two years into the downturn, and our cash remains strong at $131.2 million,” said CEO Floyd Sherman in a prepared statement. “Accordingly, we believe we are well positioned to withstand the challenging conditions facing our industry.”
Ranked No. 9 on the Home Channel News Top 350 Pro Dealer List, Builders FirstSource operates 61 lumberyards in 11 states.
HCN Index limps into the weekend
The HCN Stock Index declined 4.68 percent on Friday to finish the week at 646.58. Since Monday, the index has steadily deteriorated, shedding 14.2 percent in four straight days of downward movement.
Also on Friday, the Dow Jones Industrial Average declined 3.59 percent, dropping 312.3 points to finish at 8,378.95.
Among the 20 home channel companies on the HCN index, BMHC suffered the highest percent decline on Friday – 40.9 percent. It finished the day at $0.42, after announcing the day before that it would no longer be traded on the New York Stock Exchange. Other big decliners were BlueLinx, down 9.1 percent; Fastenal, down 8.0 percent; and Builders FirstSource, down 7.74 percent.
Shares of Louisiana Pacific rose 20 cents to $3.48, a 6.1 percent gain.