BlueLinx names new CEO and president
In an unexpected move, BlueLinx Holdings announced that Shyam Reddy has been appointed as the building product distributor's new CEO and president.
The move is effective immediately with Reddy also joining the company's board of directors.
Reddy succeeds Dwight A.K. Gibson who is departing the company and vacating his seat on the BlueLinx Board of Directors. The company did not provide any reason behind Gibson's sudden departure from BlueLinx.
The new CEO is a veteran of the company, having most recently served as chief legal and sustainability officer and corporate secretary where he was responsible for the legal, risk management, ESG, marketing and communications functions at BlueLinx.
Before that, Reddy served as our senior vice president and chief transformation officer from April 2018 to May 2019 and senior vice president, chief Administrative officer, general counsel, and corporate secretary from May 2017 to April 2018. Reddy joined the company in 2015 as senior vice president, general counsel and corporate Secretary, serving in that position through May 2017.
“Shyam is a gifted leader who brings an exceptional depth of institutional knowledge and experience to BlueLinx,” Kim Fennebresque, BlueLinx chairman, said in a statement issued by the company. “Our Board is confident that Shyam is well suited to successfully navigate a challenging macroeconomic environment, while continuing to position the business for profitable growth."
Gibson was named as BlueLinx next CEO in April 2021 and succeeded Mitchell Lewis following his retirement in June 2021.
"On behalf of the entire board, I would like to thank Dwight for his leadership and contributions to BlueLinx," Fennebresque said. "We are grateful for the highly skilled and diverse team he has helped assemble, who will continue to contribute enormous value to our organization.”
Gibson also provided a departing statement and said, "It has been a privilege to work with the BlueLinx team to continue building BlueLinx into a stronger, more profitable business during my tenure, while supporting our customers and suppliers with industry-leading, value-added services and solutions.”
Based in Marietta, Georgia, BlueLinx provides lumber, panels, engineered wood, siding, millwork, and industrial products to approximately 15,000 customers including national home centers, pro dealers, cooperatives, specialty distributors, regional and local dealers, and industrial manufacturers.
“I am honored to continue to serve BlueLinx in this new role, and am confident that our fortified balance sheet, combined with our strong EBITDA and cash generation, positions us well going into a more challenging cycle, while preserving our ability to effectively execute on our strategic initiatives," Reddy said.
Last month, BlueLinx reported that fourth quarter 2022 sales decreased 13% to $848 million compared to sales of $973 million in the fourth quarter of 2021. BlueLinx said net sales of specialty products, including engineered wood, siding, millwork, outdoor living, industrial products and specialty lumber and panels, decreased $50 million, or 8%, to $592 million for the period.
Sales of structural products in the fourth quarter, which include lumber, plywood, oriented strand board, rebar, and remesh, decreased $75 million, or 23%, to $256 million in the the fourth quarter.
The company also posted a fourth quarter net income of $32 million, falling from a net income of $74 million in the prior fourth quarter.
Looking ahead, BlueLinx said that through the first 11 weeks of the first quarter of 2023, specialty product gross margin was in the range of 18% to 19%, with daily sales volumes lower by a range of 17% to 18% versus the prior year. The company attributed the falloff to current challenging macro environment and compared to a historically strong Q1 2022.
The company said it will continue to evaluate market pricing for wood-based commodities and adjust accordingly at the end of each period. BlueLinx said it expects to provide its full financial results for the first quarter 2023 in early May.
In the meantime, Reddy said he believes BlueLinx is ready to move forward under his direction.
"Our talented associates are our greatest advantage, and the strength of our team underpins my strong confidence in BlueLinx’s future, and our ability to generate meaningful and sustained value creation for our shareholders," Reddy said.
