COVID-19 impacts Foundation Building Materials
Foundation Building Materials (FBM) reported that second quarter net sales fell 13.2% to $486.1 million compared to net sales of $559.9 million in the second quarter 2019.
In its second quarter earnings report, FMB said that its base business net sales across all of major product lines decreased during the quarter primarily as a result of reduced business activity due to the impacts and disruptions of COVID-19.
The Santa Ana, Calif.-based building products distributor posted a net income of $9.857 million from the quarter, falling nearly 33% from a net income of $14.677 million for the same period a year ago.
Through July, the COVID-19 crisis has continued to have a negative impact on most of the markets in which the company operates, FMB said.
In a select number of states, including Washington, California, Michigan, New Jersey, and Pennsylvania, FBM has faced job site restrictions, which reduced branch operations. As a result, July 2020 net sales were down approximately 7% year over year.
FBM operates about 170 locations in the United States and Canada. The company distributes wallboard, suspended ceiling systems, metal framing, and complementary building products.
The Bottom Line: Sales fall 13.2% for the quarter Foundation Building Materials’ net income drops nearly 33% to $9.857 million.
What the CEO said: “Despite the decline in net sales due to the COVID-19 Pandemic, our stable profitability highlighted our second quarter results,” said Ruben Mendoza, president and CEO of Foundation Building Materials. “Our long-term strategic focus is unwavering. As we navigate through these challenging market conditions, we remain committed to our strategic priorities that will lead to long-term value creation for our company.”
Company info: The full second quarter 2020 report from Foundation Building Materials is available here.