Builders FirstSource profits soar in Q3
Window, doors and millwork sales rise nearly 14%.
Builders FirstSource (BFS), the Dallas, Texas-based pro dealer, reported third quarter 2018 net sales increased more than 12% to $2.1 billion from third quarter 2017 net sales of $1.87 billion.
The dealer said estimated sales volume grew 1.5% during the quarter, while price increases related to commodity inflation resulted in an additional 11.2% in sales growth compared to the third quarter of 2017.
Excluding commodity inflation, BFS said single-family homebuilding market sales grew about 3.1% while multi-family end market sales edged up 0.5%, offset by a 2.6% decline in the repair and remodel market.
Value added products sales, including windows, doors and millwork, and manufactured products categories, grew by $92 million, or 13.9%, during the quarter, according to BFS.
Net sales for the first 9 months of 2018 totaled $5.9 billion, up 12.4% over the first 9 months of 2017.
BFS posted a net income of $73.3 million for the quarter, nearly doubling a net income of $39.8 million in the third quarter a year ago. For the first 9 months of 2018, BFS reported a net income of $153.2 million, an 88% increase from a net income of $81.5 million for the first 9 months of 2017.
Looking ahead, CEO Chad Crow said, “While the rate of market growth has recently eased, the long term outlook for the housing industry continues to be favorable as do the opportunities for Builders FirstSource to generate profitable growth for the balance of 2018 and beyond. We continue to invest in high margin value added products and operational excellence initiatives that position us well within the industry.”
At the end of the third quarter, BFS operated more than 400 locations in 40 states.
The dealer said estimated sales volume grew 1.5% during the quarter, while price increases related to commodity inflation resulted in an additional 11.2% in sales growth compared to the third quarter of 2017.
Excluding commodity inflation, BFS said single-family homebuilding market sales grew about 3.1% while multi-family end market sales edged up 0.5%, offset by a 2.6% decline in the repair and remodel market.
Value added products sales, including windows, doors and millwork, and manufactured products categories, grew by $92 million, or 13.9%, during the quarter, according to BFS.
Net sales for the first 9 months of 2018 totaled $5.9 billion, up 12.4% over the first 9 months of 2017.
BFS posted a net income of $73.3 million for the quarter, nearly doubling a net income of $39.8 million in the third quarter a year ago. For the first 9 months of 2018, BFS reported a net income of $153.2 million, an 88% increase from a net income of $81.5 million for the first 9 months of 2017.
Looking ahead, CEO Chad Crow said, “While the rate of market growth has recently eased, the long term outlook for the housing industry continues to be favorable as do the opportunities for Builders FirstSource to generate profitable growth for the balance of 2018 and beyond. We continue to invest in high margin value added products and operational excellence initiatives that position us well within the industry.”
At the end of the third quarter, BFS operated more than 400 locations in 40 states.
