More tough decisions: ProBuild announces closings
ProBuild has announced the closings or consolidations of 12 of its locations across the country.
“We will be exiting three markets, consolidating our operations in three markets and eliminating lines of business in three markets,” said president and CEO Fred Marino in a memo sent to ProBuild employees. “We will continue to serve our customers in the majority of markets with a more efficient footprint and/or a rationalized service offering suited to each market.”
Most of the closures are expected to take place by Nov. 15, 2011. The company will make market exits in Yorkville and Westmont, Ill.; Columbia, S.C.; and South Fork, Colo. It plans market consolidations in Granite Falls, Sedro Woolley, Coupeville, Bonney Lake and Moses Lake, Wash., and Cherry Hill, N.J.
ProBuild also plans service reductions in Greensboro, N.C., and Fredericksburg, Va. For these locations, only ProBuild’s gypsum operations will remain in the market. The gypsum operation in Lynchburg, Va., will be discontinued, although that location will remain open and continue its lumber operations.
“It is difficult to make the decision to close operations because we recognize the impact it will have on our employees and the communities which we serve,” Marino said in the memo. ”But this step is made to improve overall profitability of the company, and to retain jobs and more effectively serve our customers across the country.
“ProBuild is facing tough decisions like this all around the country as we continue to deal with a struggling economy. But we are confident that by making these difficult decisions now, ProBuild will ultimately be better positioned to weather the downturn and eventually thrive when market conditions become more favorable.”
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It is sad to know that the
It is sad to know that the gypsum operation in Lynchburg, Va., will be discontinued, although that location will remain Ios On Android Phone open and continue its lumber operations.
ProBuild must have taken some
ProBuild must have taken some heavy losses if it closing down so many shops. TheGateKeeper (Muay Thai practitioner)
USG Q3 loss widens
USG Corp. reported third-quarter net loss of $115 million, compared with a net loss of $100 million in the third quarter of 2010. Net sales for the quarter totaled $792 million, up 4.5% from $758 million in the prior-year period.
"Many of our key markets continue to experience recessionary levels of demand that are near record lows," said James Metcalf, president and CEO. "To accomplish both our short-term objective of returning the company to an operating profit and our longer-term aspiration of reducing volatility in our earnings, we will continue to execute our three strategic priorities: strengthening core businesses, diversifying earnings and differentiating USG through innovation. We remain confident that by pursuing these strategies USG will remain a leading building solutions provider in its key product categories and markets."
The corporation’s adjusted operating loss was $17 million in the third quarter, compared with $23 million in the year-ago period. Adjusted operating loss excludes restructuring charges and non-cash long-lived asset impairment charges. The majority of these charges were non-cash and primarily relate to the planned closure of a gypsum quarry and ship loading facility in Windsor, Nova Scotia, Canada, that were idled in the first quarter of this year.
For the first nine months of 2011, the building products company reported a net loss of $290 million, compared with a net loss of $284 million in the first nine months of 2010. Net sales for the period totaled $2.3 billion, up 4.5% from $2.2 billion in the prior-year period.
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Builders FirstSource points to improvement
Builders FirstSource, the Dallas-based pro dealer, posted its best operating performance since the third quarter of 2007.
The company’s third quarter had sales of $217.2 million, up 20.4% from the same quarter last year. The company’s net loss narrowed to $11.6 million, down from $20.5 million in the third quarter of 2010.
The company reported gross margin percentage was 20.5%, up from 19.7%, a 0.8 percentage point increase from the third quarter of 2010. Specifically, margins improved 1.1% points due to increased sales volume combined with a decrease of fixed costs in costs of goods sold, which was offset slightly by a 0.4 percentage-point decrease in sales price.
"Though our financial results have continued to show improvement, the housing market remains very challenging, as does the overall state of the economy," said CEO Floyd Sherman.
According to Sherman, demographic trends and growing population must at some point boost demand for housing. "We are still optimistic about the long-term outlook of our industry, due largely to the increasing disparity between the current low level of housing starts and the on-going housing demand being created by current demographic trends," he said.
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