Boise Cascade posts strong Q4 sales
Boise Cascade reported fourth quarter net sales of $1.5 billion, increasing more than 36% from fourth quarter 2019 net sales of $1.1 billion.
Wood Products sales, including sales to the company’s Building Materials Distribution (BMD) business, increased 21%, to $358.7 million for the quarter compared to sales of $296.3 million in the prior fourth quarter.
The increase in sales was driven primarily by higher plywood and lumber prices, as well as higher sales volumes for I-joists. Demand for plywood in fourth quarter 2020 far outpaced industry production levels, driving the continued favorable pricing, Boise Cascade said. The increases were offset partially by decreased net sales prices for LVL and I-joists (EWP products), as well as lower sales volumes for plywood and LVL.
BMD sales jumped 34% to $343.1 million for the period with the overall increase in sales being driven by sales price and sales volume increases of 26% and 9%, respectively. By product line, commodity sales increased 62%, general line product sales increased 16%, and sales of EWP increased 15%.
Boise Cascade’s total net sales for 2020 reached $5.5 billion, rising 18% from full year sales of $4.6 billion in 2019.
Profits for the fourth quarter soared 76% as Boise Cascade posted a net income of $26 million compared to a net income of $14.6 million in the previous fourth quarter.
For the full year, Boise Cascade reported a net income of $175 million. This marked a 116% leap above a net income of $81 million in 2019.
net income of $26.0 million, or $0.66 per share, on sales of $1.5 billion. For the full year 2020, we reported net income of $175.0 million, or $4.44 per share, on sales of $5.5 billion. Fourth quarter and full year earnings per share were negatively impacted by $1.10 per share and $1.69 per share, respectively, related to the events further described below.
The Bottom Line: Fourth quarter sales climb more than 36% at Boise Cascade as profits for the period rocket upward 76% to $26 million.
What the CEO said: “In the face of many challenges presented by extraordinary market conditions and the pandemic, I am proud that we delivered the best safety performance in our Company’s history in 2020. Our associates showed great resilience, and we fully leveraged our proven values to provide direction and clarity to our team during these unprecedented times,” said CEO Nate Jorgensen. “I am optimistic and confident about 2021 and the future of Boise Cascade”
Company info: The full fourth quarter 2020 financial report from Boise Cascade can be accessed here.