Sales inch upwards at Builders FirstSource
Builders FirstSource, the Dallas-based chain of lumberyards and component plants, reported sales of $162.8 million for its first fiscal quarter, a 1% increase from sales of $161.4 million in the same period a year ago. Net income for the quarter, which ended March 31, 2011, was $21.2 million, compared to a net loss of $31.4 million a year ago.
“We are encouraged by our first quarter financial results, especially in light of continued housing market challenges, the difficult pricing environment and the overall state of the economy,” said Floyd Sherman, CEO at Builders FirstSource . “As we anticipated, quarter-over-quarter comparisons will be very difficult through the first half of this year due to the temporary momentum created by the expiration of the federal tax credit for first-time homebuyers during the first half of 2010.”
Sherman pointed out that actual U.S. single-family housing starts for the first quarter of 2011 were 89,900, a decrease of 21.4 percent compared to the first quarter of 2010. “In the South Region, as defined by the U.S. Census Bureau, and which includes all of our markets, we saw similar trends as actual single-family housing starts were 52,700, down 19.3 percent, and single-family units under construction were 110,800, down 14.6 percent compared to the first quarter of 2010.”
Builders FirstSource operates 52 distribution centers and 46 manufacturing facilities in 9 states, principally in the Southern and Eastern United States.
Home remodeling to slow, says Harvard study
Remodeling activity is expected to move at a sluggish pace this year due to the stalled housing market and economic recovery, according to the Joint Center for Housing Studies of Harvard University. The center’s Remodeling Future’s Program predicted annual growth slowing throughout the year with spending up only 0.2% in 2011.
“Recent softness in the housing market and continued pessimism among remodeling contractors point to a slowdown in the remodeling market toward the end of the year,” said Kermit Baker, director of the Remodeling Futures Program at the Joint Center.
The Remodeling Futures Program, initiated by the Joint Center for Housing Studies in 1995, is a comprehensive study of the factors influencing the growth and changing characteristics of housing renovation and repair activity in the United States. The program seeks to produce a better understanding of the home improvement industry and its relationship to the broader residential construction industry.
ProBuild brings FSC certification to 59 yards
ProBuild Holdings announced that 59 of its facilities nationwide have received Forest Stewardship Council (FSC) Chain of Custody Certification. This certification enables these locations to sell FSC-certified materials.
According to the ProBuild, the nation’s largest professional building materials supplier, FSC certifications complement ProBuild’s commitment to sustainability through its ProEarth platform. ProEarth is a comprehensive sustainability platform that guides how ProBuild does business. ProEarth’s three platform elements include: operational excellence, product stewardship and social responsibility.
“We have made a commitment to become FSC certified in markets where customer demand dictates,” said ProBuild CEO, Bill Myrick. “We support all types of wood certification programs so that we approach sustainability in a measurable, accountable and responsible way. This is only one step in our much longer journey to green as a company.”
An FSC product label ensures that the forest products used are from responsibly harvested and verified sources.
“Our customers want high-quality green products from a professional, one-stop resource,” said Lisa Peterson, ProBuild’s vice president, marketing and communications. “FSC provides that credible certification so our customers know they are using responsibly harvested lumber.”