Builders FirstSource hammers through deflation
Net income increased for the Dallas-based pro dealer, net sales declined.
Dallas-based Builders FirstSource pointed to an ongoing expansion of value-added products as a key to its third-quarter performance.
The quarter ended Sept. 30 produced net sales of $1.98 billion, a 6.5% decline from $2.12 billion in the same quarter last year, as deflation of lumber and lumber sheet goods continued. Net income, however, improved 6.5% to $78.1 million, compared to $73.3 million in the prior-year quarter.
The pro dealer said it saw “attractive returns” from its investments in manufacturing capacity and recorded 11.2% per day sales volume increases in value-added product categories.
The company also reported a strengthened market position with the acquisition of three truss manufacturing plants in Arizona and Nevada. With these moves, Builders FirstSource now operates in 77 of the top 100 U.S. metropolitan areas.
Commodity deflation decreased sales per day by an estimated 17.4%, the company reported.
Builders FirstSource operates in 40 states with approximately 400 locations.
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Bottom line: Net income increased 6.5% to $78.1 million.
What the CEO said: “As we enter the end of the peak home buying season, the overall market outlook continues to improve,” said CEO Chad Crow. “Homebuilders are increasingly catering to the demands of buyers with a more affordable and right-sized product.”
More on Builders FirstSource: Read the full Q3 earnings release here.
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