Western Forest Products CEO resigns
British Columbia, Canada-based Western Forest Products has announced that Reynold Hert has resigned as president and CEO, effective immediately. He will continue to assist the company through the transition.
Dominic Gammiero, a western director and an executive with 30 years of forest industry and capital market experience, will take on the role of interim president and CEO until a permanent replacement has been found.
Western Forest Products has struggled in recent years with the downturn in lumber markets. Its primary activities are timber harvesting, lumber and wood chip production, and manufacturing. The company has recently reported losses.
“The board thanks Reynold for leading Western through a difficult four years,” said chairman John MacIntyre. “Reynold oversaw our acquisition of Cascadia Forest Products and the Englewood Division of Canfor and has been a key contributor to the company. Dominic’s strong experience will assure a solid transition until a successor has been selected. A search for a permanent CEO will be led by Dominic and the board.”
BMHC sells off equipment, properties to stem losses
Building Materials Holding Corp. (BMHC), the industry’s fifth largest pro dealer, has reported a $45.2 million loss for its third quarter, which ended on Sept. 30, 2008. Sales were $364 million, a 39 percent drop from sales of $594 million a year ago.
So far this fiscal year, the company has lost $111 million on sales of $1.1 billion. In fiscal 2007, BMHC posted a profit of $18.6 million on sales of $1.8 billion for the first nine months.
In a conference call with analysts, Robert Mellor, BMHC’s chairman and CEO, listed a number of steps the company has taken to preserve liquidity. In addition to negotiating a permanent amendment to its credit facility, BMHC has sold off $4.2 million in excess vehicles and equipment as well as properties it owns.
Costs are also being cut through closings and consolidations. A Northern California location in Dixon that provided concrete services is in the process of winding down, Mellor said. In Southern California, in the city of Colton, BMHC is negotiating to sell its concrete services. If the sale falls through, the operation will close, according to Mellor. A reload center in Southern California, in Mira Loma, will close in the next 30 days and be put up for sale.
In Colorado, a door shop and millwork facility in Fort Collins and a wall panel plant in Greeley will be moved to other BMHC facilities. A Puget Sound, Wash., distribution center is being relocated.
The sale of these and other surplus properties is expected to generate $45 million in the next 24 months, Mellor said.
Some of these closings are part of BMHC’s restructuring of its two former divisions, SelectBuild and BMC West, into one organization. In a question and answer session with analysts, company president and chief operating officer Stan Wilson said the company will be looking at SelectBuild’s wide array of construction services — for example, plumbing, electrical and other related trades — with an eye toward profitability.
“They need to be contributing to income, or we will be exiting those,” Wilson said. SelectBuild is also becoming a more “sales oriented” operation rather than an “order taking operation,” Wilson said, adding, “It’s a major difference than the way we used to operate.”
CEO Mellor, commenting on the company’s delisting from the New York Stock Exchange last week, said: “We were disappointed that the New York Stock Exchange did not follow the lead of NASDAQ in suspending the trading requirements during these economically turbulent times.” BMHC’s move to over-the-counter trading would have no effect on the company’s credit agreement, he noted.
Bosch Lumber wins award from local university
Bosch Lumber, a Dickinson, N.D.-based Do it Best lumber and building materials dealer, won the Blue Feather Award for contributions to Dickinson State University, Do it Best announced.
Bosch has contributed both time and money to the university, as well as supporting the DSU Foundation, Blue Hawk Booster Club and the Dickinson Area Chamber of Commerce.
Bosch Lumber, founded by Joe R. Bosch in Dunn Center, N.D., in 1946, opened locations in Killdeer in 1952 and Dickinson in 1959. In 1975, five of Joe’s sons, Paul, Joel, Bill, Jim and Keith, joined together to buy their father out. Today, Paul, Joel and Joel’s son, Troy, own the company.
The Blue Feather Award is given each year to individuals who have made a significant contribution to the university through dedicated service, promotion, financial support and other efforts.