Builders FirstSource sees big Q1 profits
Deflation in commodity prices impacts sales for the quarter.
Builders FirstSource (BFS) reported first quarter sales fell 4.1% to $1.6 billion from sales of $1.7 billion in the first quarter 2018.
But profits surged ahead as BFS posted a net income of $35.7 million – nearly 54% higher than a net income of $23.2 million for the same period last year.
The Dallas, Texas-based pro dealer said lumber and lumber sheet goods sales were down 19.6% primarily as a result of deflation in commodity prices as compared to the same period a year ago. Builders FirstSource said it achieved increased sales in its remaining core product categories due to higher sales volume.
Net sales per day declined by 2.5% primarily due to commodity deflation, which depressed sales by 9.3%, BFS said.
Including the impact of commodity deflation, value-added product sales per day grew by 8.8% including sales growth of 8.1% in the windows, doors, and millwork category and 9.6% in manufactured products.
Bottom Line: BFS profits are up 54% to $35.7 million while sales slip 4.1% to $1.6 billion.
From the CEO: “The execution of our strategic priorities is off to a strong start in 2019. We continued to invest in our industry leading manufacturing capacity, providing customers with value-added solutions to fulfill their most important homebuilding needs. Additionally, our operational efficiency initiatives are producing tangible results through a more agile and efficient operating platform. I am extremely pleased with our team’s outperformance and solid earnings growth in a challenging quarter,” said CEO Chad Crow.
Company Info: Read the full BFS Q1 report here.
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