Red Shield lumber makes inroads to Haiti
Eco Building Products has announced its first successful shipment of 22 containers of “Red Shield” treated lumber, which has arrived at its Port au Prince distribution facility. The entire lumber package previously sold to local Haitian building supply companies will be distributed this coming week.
Eco Building Products now has additional containers en route to its wholesale lumber facility to increase its market share in Haiti’s rebuilding efforts. This accomplishment follows more than two months of logistical issues and learning the process of exporting and importing commercial goods into Haiti.
Gils Aubry, Eco Building Products top representative in Haiti, met with President Michel Martelly this past week to discuss the role of both Red Shield lumber and the company’s new seismic wall system designed by Smart Components in the rebuilding effort. The company’s goal is to teach Haiti how to build cost-effective structures up to five stories with lumber as opposed to the traditional concrete methodologies that cannot withstand seismic movement.
Previous to this week’s shipment, all prior shipments had been made to non-profit organizations in Haiti. Eco Building Products is now working with the U.S. Department of Trade and Commerce on plans to take Red Shield lumber into other countries.
Eco Building Products is a manufacturer of “Red Shield” wood products treated with an eco-friendly proprietary chemistry that protects against fire, mold/mycotoxins, fungus, rot-decay, wood-ingesting insects and termites.
Sales surge at Beacon Roofing Supply
Third-quarter sales of both residential and non-residential product showed double-digit percentage increases for the Peabody, Mass.-based specialty distributor.
Total sales increased 14% to $540.7 million, a record for a third quarter, the company said. Net income also was at a third-quarter record high — $24.1 million. That’s up 47.9% from the prior-year quarter.
"Our roofing businesses benefited from a pick-up in volume during the quarter, including some hail storm business, and from industry-wide price increases, although our commercial business has remained consistently strong throughout this year," said Paul Isabella, the company’s president and CEO.
"We were able to use our strong financial position to increase inventories ahead of some vendor price increases, which enabled us to achieve more normal gross margins that were significantly above last year’s low rates," Isabella added.
The company’s purchase of Enercon Products was completed during the quarter.
Sales rise at Owens Corning
Owens Corning reported net sales of $1.5 billion for its second quarter of 2011, a 5% increase over sales of $1.4 billion in the same quarter of 2010.
Net income for the quarter, which ended June 30, was $78 million, compared with net earnings of $937 million a year ago.
In the building materials division, net sales were higher in the second quarter of 2011, as compared with the same period in 2010. The increase in net sales during the second quarter was the result of increased sales volumes within the roofing business. Offsetting this increase were lower sales volumes within the insulation business and the loss of sales from the divestiture of the U.S. masonry products business.
"Owens Corning delivered a strong second quarter," said chairman and CEO Mike Thaman. "The actions we took in the quarter built significant momentum across the company and position us for a strong second half."
In terms of outlook, the Toledo, Ohio-based company had previously estimated that composites would grow EBIT in excess of 40% for the year. However, as a result of a near-term correction in the Chinese wind energy market, as well as higher-than-anticipated inflation costs, the company now expects EBIT growth of about 25%.
Owens Corning continues to believe that the insulation business will be profitable in the second half of 2011. This outlook is consistent with the company’s previous guidance and reflects strong operating execution in a continuing weak market. The company’s new EcoTouch insulation product has been successfully launched across all residential markets in the United States and Canada.
In roofing, Owens Corning believes full-year EBIT margins of 20% are achievable in 2011. Storm activity in the United States in the first half of the year has created momentum in demand that is expected to continue into the second half of 2011.