Readers Respond: Mad about the M.I.D.
Tax incentives for home owners made headlines this week, as the National Association of Home Builders states its objection to the Republican tax plan. One specific deal breaker – an expected alternative to the mortgage interest deduction never materialized in the plan.
HBSDealer’s weekly poll question asked readers: “What’s your position on the Mortgage interest Deduction?” Here’s the tally of responses after 87 votes:
• 49%: MID must be saved in its current form, not some watered-down version.
• 31%: Lower taxes overall are more important than home ownership incentives.
• 20%: MID isn’t necessary, as long as there is some tax incentive for home ownership.
USG expanding, improving Jacksonville plant
USG Corp., the Chicago-based building products manufacturer, said it will “expand and improve” manufacturing capabilities at its Jacksonville, Fla., plant.
As part of the investment, a new production line will be added to manufacture USG’s Securock ExoAir 430 panels, the company reported.
“We have been a part of the Jacksonville community for 80 years and I look forward to this next phase of growth,” said Jennifer Scanlon, president and CEO of USG. “This investment reflects our commitment to making high-quality, innovative building products that solve customer challenges and create a safer, more sustainable future.”
The Securock ExoAir 430 Air Barrier system is an integrated gypsum sheathing panel with a pre-applied fluid air-barrier membrane, which eliminates application challenges such as weather impact, material waste and performance variances, and enables better speed of construction, the company said.
The addition of the high-speed, automated production line in Jacksonville will allow USG to distribute Securock ExoAir 430 to more customers throughout the United States and Canada, according to USG.
The manufacturer plans to improve overall plant efficiency, including upgrades to modernize process mill equipment at the Jacksonville location. The plant also produces wallboard, joint compounds, and other surface products.
Construction and plant updates are projected to be completed by the end of 2018, USG reported. The company expects to add approximately 20 new jobs as a result.
BlueLinx reports flat sales
BlueLinx Holdings Inc., the Atlanta-based building products distributor, reported third quarter 2017 net sales of $479.3 million — a slight increase from net sales of $476 million in third quarter 2016.
The company also reported a net income of $5.7 million for third quarter 2017 which did not include any real estate gains, compared to a net income of $15 million from the prior fiscal third quarter which included $13.9 million in real estate gains.
“We are pleased to report continued improvement in our financial performance from the second quarter of 2017 which resulted in increased net income for the third quarter and our highest third quarter adjusted EBITDA since 2007. These results, coupled with the new five-year revolving credit facility that we closed on October 10, 2017, and the successful completion of our secondary offering last week, provide an inflection point for BlueLinx as we move forward into the next phase of our recovery,” Mitch Lewis, BlueLinx president and CEO, said in a prepared statement.
This past month, BlueLinx offered nearly four million shares of common stock priced at $7.00 per share. The offering closed on Oct. 23.
According to Susan O’Farrell, BlueLinx senior vice president and CFO, the company was also able to “significantly reduce our debt principal” by $49.8 million from the same period a year ago.
BlueLinx said it undertook several operational efficiency initiatives since the second quarter of 2016, resulting in the closing or sale of facilities and rationalizing inventory by discontinuing certain underperforming products. When excluding the effects of the operational efficiency initiatives, adjusted same-center net sales increased by $15.3 million or 3.3% from this period a year ago, the company reported.