Builders FirstSource Q2 profits soar
While sales are up, profits rocket for the Dallas, Texas-based pro dealer.
Builders FirstSource (BFS) reported second quarter 2018 net sales of $2.1 billion, a 13.4% increase over net sales for the second quarter of 2017 of $1.8 billion.
Sales growth included an 8.8% impact from commodity price inflation and a 4.6% increase in sales volume growth. Sales volume, excluding commodity inflation, grew approximately 6% in the single-family homebuilding end market and 1.8% in the repair and remodeling/other end market, offset by declines in multi-family, the Dallas, Texas-based pro dealer reported.
Value added products sales, including windows, doors and millwork, and manufactured products categories, grew by 11.1% for the quarter.
Net sales for the first six months of 2018 were $3.8 billion, up 12% percent from net sales of $3.4 billion for the first half of 2017.
BFS also reported a second quarter net income of $56.6 million, rising 49% from a net income of $37.9 million in the second quarter a year ago. For the first half of 2018, BFS posted a net income of $79.8 million – a 91% increase from a net income of $41.7 million in the first half of 2017.
“We continue to execute on our strategic plan and investments in margin accretive value-added products as well as customer service and efficiency enhancing initiatives which are targeted to generate strong, sustained earnings and cash flow growth,” Chad Crow, CEO of Builders FirstSource said in a prepared statement released today after the close of market trading.
SG&A in the second quarter of 2018 was $391.8 million or 18.7% of sales, representing a decrease of 130 basis points versus the second quarter of 2017. The significant decrease in SG&A as a percent of sales was driven by cost leverage and continued cost management, the company said.
Builders FirstSource operates more than 400 locations in 40 states.
No comments found