BlueLinx profits tumble in Q4

Building products distributor BlueLinx reported 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.

The decline was primarily due to lower volume, the Marietta, Georgia-based company said.

Net sales of structural products, which include lumber, plywood, oriented strand board, rebar, and remesh, decreased $75 million, or 23%, to $256 million in the the fourth quarter. 

BlueLinx noted that the decrease in structural sales and gross profit was due primarily to the year-over-year declines in the average composite price of framing lumber and structural panels, 36% and 26% respectively, in addition to lower volumes.

Net sales for the year rose 4% to $4.5 billion in comparison to full year 2021 net sales of $4.3 billion.

The company posted a fourth quarter net income of $32 million, falling from a net income of $74 million in the prior fourth quarter.

BlueLinx reported a net income of $296 million for the full year, breaking even with full-year profits from 2021.

During the full year 2022, BlueLinx allocated $169 million of cash including $67 million for the acquisition of Vandermeer, which occurred in the fourth quarter. The company said $36 million was invested in cash capital investments used to improve its distribution facilities and upgrade its fleet.

During the fourth quarter, the company also unveiled a new logo, website, and branding.

BlueLinx serves all 50 states and says it services about 15,000 customers, including national home centers, pro dealers, cooperatives, specialty distributors, regional and local dealers and industrial manufacturers.