Boise Cascade posts earnings decline

Boise, Idaho-based Boise Cascade reported net income of $20.2 million, down 23% from the same quarter a year ago.

Net sales declined 1% to $955.4 million.

"Building Materials Distribution (BMD) performed better this quarter as commodity prices stabilized and gross margins improved; however, sales volumes in April and May were disappointing, partially due to unusually wet weather in Texas and the Southeast,” said Tom Corrick, CEO

Corrick said that June sales and earnings results for BMD were much stronger.

Other factors that hurt Boise’s performance in the Wood Products division were lower lumber prices and operating challenges at the company’s plywood operations in the Carolinas.

“We were able to make good progress on the start-up of the new dryer at our South Carolina operation in June after working through construction and installation issues in April and May,” Corrick said.

The company said it expects to experience modest demand growth for its products during the rest of the year as the housing industry recovers to historic trend levels.

The company pointed out that the consensus forecast for 2015 housing starts calls for about 1.11 million total U.S. housing starts, an 11% expected increase from 2014 levels. And even at that level, total housing starts would remain below the historical average for the last 20 years of approximately 1.3 million starts per year.