Builders FirstSource delivers strong profits in Q2
Builders FirstSource reported second quarter sales increased 2.2% to $1.946 billion from sales of $1.904 billion for the second quarter 2019.
The Dallas, Texas-based pro dealer said that core organic sales actually declined 2.1% in the quarter but were boosted by commodity price inflation.
Acquisitions contributed about 2.5% of sales growth while estimated sales volume was up 0.4% for the quarter. Commodity inflation raised sales by 1.8%, the company said in a report issued after the close of market trading.
The dealer, with about 400 locations in 40 states, posted a net income of $78.9 million for the period, rising 18.5% from a net income of $66.6 million in the second quarter last year.
Sales for the first half of 2020 are up 5.6% to $3.7 billion, including 3% growth driven by acquisitions.
The Bottom Line: Second quarter profits rise 18.5% to $78.9 million as sales for the period move up 2.2% to $1.946 billion
What the CEO said: “As we look at our markets, improvement in housing data, record low mortgage rates, and shifts toward suburban living are all encouraging and continue to support demand for our integrated services,” said CEO Chad Crow. “To that end, in June, we experienced a sharp sequential rebound in sales. Going forward, we remain confident in our ability to outperform the market as well as mitigate business disruptions outside of our control related to the COVID-19 pandemic.”
Company info: The full second quarter 2020 financial report from Builders FirstSource is available here.