Plum Creek announces strong Q2 results
Plum Creek Timber reported second-quarter earnings of $55 million, up 20% from $46 million in the year-ago period. Revenues totaled $356 million, up 17% from revenues of $303 million in the second quarter of 2013.
Earnings for the first six months of 2014 were $85 million, down 17% from $102 million in the same period in 2013. Revenues for the first six months were $673 million, up 5% from $643 million.
“Our second-quarter results were much as we anticipated despite lower-than-planned harvest volumes in the South,” said Rick Holley, Plum Creek’s CEO. “So far this year, the operating income and cash flow from our timber resources segments are up nearly 30% due to improving log prices and the additional harvest from the lands we acquired in December.
“Our Real Estate segment continues to perform as expected and our Manufacturing segment is on track to deliver a strong performance in 2014. Our Energy and Natural Resources segment results have grown too, as the assets we acquired over the past year are providing attractive cash-on-cash returns for our shareholders.”
The company has revised its earnings outlook for 2014 to reflect lower harvest volumes, expectations for slower log price growth and the anticipated composition of real estate transactions in the second half of the year. The company now expects 2014 income to be between $1.05 and $1.25 per share, and third quarter income between $0.27 and $0.32 per share.
Builders FirstSource swings to profit
Builders FirstSource achieved its highest sales level since 2006 as it swung to a profit in the second quarter ended June 30.
The Dallas-based pro dealer reported sales of $426.5 million, up 7.1% from the same quarter last year. Net income was $10.6 million, compared to a net loss of $48 million in the first quarter last year.
“We were able to achieve this high level of sales even though sales were reduced by commodity deflation this quarter, said Floyd Sherman, CEO. He pointed to an average drop of 8.8% drop in market prices for lumber and lumber sheet goods in the quarter.
Gross margin percentage was 22.0 percent, up from 20.7 percent last year. Gross margin percentage increased primarily due to improved customer pricing versus the second quarter of 2013.
The growth also came against a backdrop of disappointing residential construction statistics, he said.
Builders First Source acquired Houston-based Slone Lumber in the second quarter. “Evaluating attractive acquisition opportunities such as Slone will continue to be a key strategy of the company,” Sherman said.
The company operates 54 units and 48 manufacturing facilities in 9 states.
ILBSA hosts 20th scholarship event
The Indiana Lumber & Builder’s Supply Association will host the 20th Sycamore Scramble Aug. 7 at Oak Tree Golf Course in Plainfield, Indiana.
This event benefits the Blair F. Collings Scholarship Program, which is one of the largest single scholarship granting programs in the LBM industry.
The scholarship program is named to honor the memory of Blair Collings, the son of Ferguson Lumber owner Joe Collings, a past chairman of the National Lumber and Building Material Dealers Association.
Each year, the ILBSA grants thousands of dollars to employees and family members of ILBSA member companies, helping them afford quality higher education. The program has awarded slightly over $200,000 to member firm employees and their family members in college over the past 20 years, regardless of whether the firm is a traditional retail dealer or an industry supplier member.
With a rather in-depth application process, the students’ applications are “blind” judged by a panel of volunteers who consider grade-point average, extracurricular activities, campus and community service, and performance on an essay. The judging is “blind”; i.e., the identity of the applicant, his/her company affiliation, and even hometown are not revealed to the panel.
“The Sycamore Scramble and the Blair Collings Scholarship Program have become synonymous with providing unique and meaningful member services to ILBSA members and their employees”, said Rob Peters (Home Lumber of New Haven, Indiana), ILBSA President. “The thousands of volunteer hours, not to mention dollars, invested in the program demonstrate the high energy and commitment of ILBSA members.”
For sponsorship or participation information, visit www.ilbsa.org.