Prodealer and building solutions powerhouse Builders First Source reported fourth quarter sales decreased 6% to $4.4 billion from fourth quarter 2021 sales of $4.6 billion.
The Dallas, Texas-based company attributed the decline to fewer single-family housing starts during the quarter along with commodity deflation.
During the quarter, lumber and sheet good sales dropped 34.7% to $1.1 billion from sales of $1.7 billion for the same period a year ago. For the full year, lumber and sheet good sales decreased 4.3% to approximately $8.1 billion. Lumber and sheet goods accounted for 25.2% of the company’s sales in the fourth quarter and 35.6% for the fiscal year.
For the full year, Builders FirstSource reported that sales climbed 14.2% to $22.7 billion fueled by acquisitions, core organic growth, and commodity inflation.
The company’s net income decreased 13.1% to $384.5 million in the fourth quarter from a net income of $442.5 million for the corresponding quarter a year ago.
Builders FirstSource posted a full-year net income of $2.7 billion, climbing nearly 59% from a net income of $1.7 billion in 2021.
Since August 2021, Builders FirstSource has repurchased approximately 70.2 million shares of its common stock, or approximately 34% of its total shares outstanding, at an average price of $62.58 per share for a total cost of $4.4 billion.
Regarding the first quarter of 2023, Builders FirstSource said it expects sales of $3.4 billion to $3.7 billion.
The Bottom Line: Builders FirstSource’s net income fades by 13.1% in the fourth quarter but rises about 59% for the full fiscal year 2022.