Beacon Roofing Supply Q2 loss widens
Roofing distributor hit by challenging weather.
Beacon Roofing Supply reported second quarter 2019 were nearly flat, rising just 0.2% to $1.43 billion from second quarter 2018 sales of $1.42 billion.
For the first six months of 2019, the roofing and building products distributor posted net sales of $3.15 billion, up more than 23% from net sales of $2.55 billion for the first half of 2018.
The Herndon, Va.-based company also reported a net loss of $30.9 million for the quarter compared to a net loss of $23.5 million during the same period last year. For the six-month period, Beacon reported a net loss of $81 million. The company reported a net loss of $5.1 million during the same span a year ago.
Beacon operates more than 500 branches in the United States and Canada.
The bottom line: Second quarter sales are flat while Beacon’s losses widen to nearly $40 million.
What the CEO said: “We produced positive organic sales growth, highlighted by a daily sales increase of nearly 5% in residential roofing, despite the harsh weather adversely impacting quarterly demand (as noted in our March 25 press release). In an effort to help mitigate the challenging weather patterns, we were able to implement more aggressive late-quarter cost controls to match the unusually soft seasonal environment. We once again exhibited attractive price-cost performance in the second quarter, as we have done in each of the past four quarters. Importantly, the winter is now behind us and existing market sales accelerated the last several weeks of March, and that momentum has continued into April. Through key initiatives, including digital, private label, and complementary products, coupled with new branch openings, we are continuing to expand our competitive advantage in the marketplace. We remain firmly committed to reaching our long-term sales and margin objectives,” said Paul Isabella, president and CEO of Beacon Roofing Supply.
Company Info: Read Beacon Roofing Supply’s full second quarter results here.
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