Revenues, income drop for Builders FirstSource
Builders FirstSource, one of the industry’s largest pro dealers, reported sales of $180.4 million for its third fiscal quarter, a decrease of 4.5% compared with sales of $188.9 million in the same period last year.
The company estimated that sales increased 5.6% due to commodity inflation, but decreased approximately 10% due to volume and competitive pricing pressure.
Net loss for the Dallas-based pro dealer was $20.5 million, compared with a net loss of $15.2 million a year ago.
During the current quarter, which ended Sept. 30, 2010, the company temporarily idled four manufacturing facilities, two in Maryland and two in Florida, and two distribution centers in South Carolina, in order to reduce operating expenses and excess capacity. Most of the customer demand from these idled facilities will be served by other existing locations within the market, the company said.
In a prepared statement, company CEO Floyd Sherman said: “Though the volatility in the commodity markets has subsided, current market conditions remain difficult, and we expect this to persist into 2011. We remain committed to our proven strategy of conserving liquidity while monitoring, and adjusting as necessary, physical capacity and staffing levels.
“As expected, seasonal reductions in working capital helped reduce our use of cash during the quarter. We still believe our liquidity at year-end will range from $100 million to $110 million. While we do not expect 2011 to be a robust year of new-home construction, we are hopeful we will see some improvement over 2010, and that 2011 will signal the beginning of a sustained recovery.”
USG posts a loss of $100 million for Q3
Chicago-based USG Corp., parent company of North American Gypsum and owner of the Sheetrock brand, posted a third-quarter net loss of $100 million, compared with a loss of $94 million for the same quarter last year.
Sales for the quarter ended Sept. 30 were $758 million, down 7.7% from $822 million as reported for the same quarter in 2009.
“Our third-quarter results reflect continued weak market conditions and extraordinarily low shipping volumes,” said William Foote, chairman and CEO. “Nonetheless, operating margins for our domestic wallboard business were stable, our ceilings business had another strong quarter, and the performance of our distribution business continued to improve despite ongoing weakness in commercial construction.”
USG’s North American Gypsum segment reported third-quarter 2010 net sales of $413 million and an operating loss of $43 million.
USG’s building products distribution segment, L&W Supply Corp. and its subsidiaries, reported third-quarter net sales of $281 million, down 15% compared with the third quarter of 2009 with an operating loss of $24 million.
The company’s Worldwide Ceilings segment reported third-quarter net sales of $174 million, up $1 million from the same quarter last year. Operating profit for the quarter was unchanged from last year at $21 million.
Looking forward, Foote said, “In the near term, we expect weak demand and product volumes to continue. Longer term, we anticipate the combination of an eventual market recovery, improved operating leverage, market-leading innovations like Sheetrock Brand UltraLight Panels and the benefits of our cost reduction initiatives to contribute to significantly improved financial performance.”
Masco Home Services to certify WaterSense homes
Masco Home Services has joined a group of licensed certification organizations qualified to oversee inspections and certify WaterSense-labeled new homes. Sponsored by the U.S. Environmental Protection Agency (EPA), the WaterSense label is earned by single-family new homes that use 20% less water than traditional models inside and out.
“Masco Home Services has partnered with the EPA to help support builders committed to bringing WaterSense-labeled new homes to their community,” said Larry Laseter, president of Masco Home Services. “The WaterSense label is a simple way for consumers to identify water-efficient products, programs and new homes that will use less energy and save water for future generations.”
Homes in the program conserve water through efficient plumbing fixtures, efficient products and hot water delivery systems, and water-saving landscape features.
All new homes must be inspected and certified before they can earn the WaterSense label. Masco Home Services completed EPA training in order to work with inspectors and provide quality assurance that homes are certified to meet WaterSense criteria.
“If just 10% of new homes built were WaterSense-labeled, Americans could save 1 billion gallons of water per year,” said Sheila Frace, director of the EPA Office of Water’s Municipal Support Division. “WaterSense-labeled homes are an investment for the future of our planet.”