Sales rise 3.3% at BlueLinx
BlueLinx Holdings, the Atlanta-based building materials distributor, reported sales of $517 million for its second fiscal quarter, a 3.3% gain over sales of $500.8 million in the same quarter of 2011. The increase in revenue was attributed to increased underlying product prices for both specialty and structural product categories. Overall unit volume declined 1.3% compared with the same period a year ago as seasonal demand was pulled forward by favorable weather experienced during the first quarter of fiscal 2012, the company said.
BlueLinx reported a net loss of $ 3.7 million for the second quarter, compared with $9.8 million in the same quarter a year ago. Gross margins increased to 12.2% from the 11.5% generated in the year-ago period. These increases reflect the company’s continued focus on margin expansion and rising product prices for many of the products distributed, including key grades of wood-based products, and a shift to the warehouse channel from the direct and reload channels.
Year-to-date, BlueLinx posted revenues of $891.4 million for 2011 and $970.7 million for 2012.
"For the second quarter we grew our revenue, increased our margins and kept our operating expenses flat as we expanded our out-of-warehouse business, producing an improved operating profit of $3.9 million,” said president and CEO George Judd. “This is our first quarterly operating profit since the second quarter of 2010. We expect our operating results to continue to improve as we continue to execute our strategy in a recovering housing market."
New orders up 45% at Standard Pacific
Standard Pacific, one of the nation’s largest home builders, reported revenues of $274.9, a 35% rise over revenues of $204.2 million for the 2011 second quarter. This was due primarily due to a 34% increase in new home deliveries (excluding joint ventures) to 815 homes, the company said.
The increase in new home deliveries was driven by a 55% increase in the number of homes in backlog at the beginning of the quarter as compared with the prior-year period, and a 13% increase in speculative homes sold and delivered during the quarter to 285 homes, compared with 253 homes a year ago. The backlog of 1,266 homes was up 62%.
Net income for the quarter, which ended June 30, was $14.3 million, compared with a net loss of $10.5 million during the same quarter in 2011.
New orders were up 45% in the second quarter compared with the same quarter a year ago.
CEO and president Scott Stowell commented: "We are pleased that the positive momentum we experienced during the first quarter of 2012 continued into the second quarter. We earned $14.3 million, with deliveries up 34%, revenues up 35%, orders up 45% and homes in backlog up 62% over the prior-year period. Our solid second-quarter results reflect the execution of our strategy and continued improvement in housing market conditions during the quarter."
The Irvine, Calif.-based company purchased $96.6 million of land (2,238 home sites) during the 2012 second quarter. Approximately 36% of land purchases (based on land value) were located in California and 32% in Florida, with the balance spread throughout the company’s other operations. As of June 30, 2012, the company owned or controlled 27,757 homesites, of which 14,966 owned home sites are actively selling or under development. The home sites owned that are actively selling or under development represent a 5.1-year supply based on the company’s deliveries for the trailing 12 months ended June 30, 2012.
Standard Pacific operates in major metropolitan areas in California, Florida, Arizona, the Carolinas, Texas and Colorado.
Profits narrow at Owens Corning
Owens Corning reported net sales of $1.39 billion for the second quarter of 2012, a 4.1% decrease from sales of $1.45 billion during the same period last year.
Net income for the second quarter, which ended June 30, was $39 million, compared with $78 million during the same period of 2011.
Net sales in insulation rose from $326 million in the second quarter of 2011 to $340 million in the second quarter of this year. Roofing revenue decreased however. Net sales in the second quarter 2012 were $605 million, compared with $645 million a year ago.
"Our second-quarter financial performance represents progress over the first quarter, but the rate of improvement is below our expectations, and we no longer see 2012 as a year of adjusted EBIT growth," said chairman and CEO Mike Thaman. "However, we continue to expect that the second half of the year will be more profitable than the first and that we will deliver strong free cash flow in 2012.
"Roofing profits remained strong, but compared negatively with the second quarter of last year due to continued high asphalt costs and competitive pressure in the marketplace," he added. "Insulation demonstrated excellent operating leverage and significantly narrowed its losses. In addition, our composites business made good progress in the repositioning of our European assets, the reduction of inventories and the start-up of the new melter in Mexico."
In the building materials segment, the company expects another year of strong financial performance in roofing, but with lower margins based on the current outlook for volumes, asphalt costs and pricing. The company continues to believe insulation will improve financial performance in the second half of the year and significantly narrow losses in 2012 on improved U.S. housing starts.