It’s hot. Here’s the business update
Friedrich says A/C unit sales are heating up with the temperature.
It’s been a summer of extreme heat throughout the U.S., and with the beginning of August, experts aren’t predicting it will cool off any time soon.
As triple-digit temperatures spike, so too are summer heat waves driving interest in better solutions for how to keep cool. Friedrich, a U.S. air conditioner company, has experienced brisk sales that began as early as June and are predicted to last well past Labor Day this year. Product trends that are heating up range from portable air conditioners and mid-priced window units, to advanced systems like ductless technology.
“For years, homeowners believed that it was all or nothing–either install central air or suffer through the hottest months of the year,” said TJ Wheeler, Friedrich VP of marketing and product management. “Now there are many other effective alternatives designed to fit nearly any budget, and also deliver a host of additional benefits such as smart technology, greater energy efficiency and all-season performance.”
According to Friedrich, portable units have been especially popular this year. Advantages include quick installation, spot cooling and heating options, easy portability and simple set up.
“Portables are great for those times when you need immediate relief in a certain small space, like a bedroom, but may not need it in the rest of the house,” said Wheeler. “They also look great; our sleek ZoneAire Compact is particularly popular for its design as well as its functionality.”
For greater cooling capabilities, yet still in the relatively affordable and easy to install category, window and room air conditioning units have advanced significantly over the past few years. New features available include Wi-Fi technology for convenient, remote management capabilities
Friedrich’s ductless solutions have become increasingly popular for conditioning air faster, maintaining more accurate temperatures and reducing energy costs. Unlike central air, homeowners love the fact that with ductless, they can customize the temperature of each room in their home, so they aren’t wasting energy by cooling/heating rooms that are unoccupied.
“This summer’s extreme heat has caused more homeowners who never thought air conditioning was a necessity to start researching and exploring their options,” said Wheeler. “The good news is that manufacturers like Friedrich have stepped up to meet the rising demand with a wide variety of innovative solutions.”
Detering Company buys Weatherford Door & Window
Weatherford provides The Detering Company with a Central Texas growth point.
The assets of Weatherford Door & Window Co., based in Bryan, Texas, has been acquired by The Detering Company.
Specializing in millwork, doors, windows, cabinets, and stonework, The Detering Company has been a leader in the Houston market for more than 90 years. The acquisition of Weatherford provides Detering with the ability to distribute and manufacture products and materials from Central Texas.
“We are excited to add Weatherford, well respected for its quality products and outstanding people, as a Detering Company, and we look forward to the opportunity to better serve our Bryan and College Station customers,” owner Carl Detering said in a prepared statement.
Charles Gerke, president of Weatherford Door and Windows added, “We are humbled to be joining the Detering Company family. Both Detering and Weatherford have a long history of delivering high quality millwork products to the home construction and remodeling industry. Being a Detering company will allow Weatherford to expand its product line as well as increase production capacity to better service the greater Brazos Valley market. Together with Detering, we are now in an even better position to fulfill our promise to provide the highest quality products and services to our customers.”
Weatherford Door & Window is the second addition to the Detering group of companies, the first being the acquisition of South Texas Brick and Stone, a brick and stone distributor in Houston in December of 2014.
Terms of the latest acquisition were not disclosed.
The Detering Company is a third-generation family-owned serving custom homebuilders and remodelers within a 90-mile radius of downtown Houston.
Big Q2 for Boise Cascade
Higher sales and higher prices lead an 89% net income increase.
Boise Cascade reported second quarter 2018 net sales of $1.40 billion, rising 24% from net sales of $1.31 billion in the second quarter 2017.
The engineered wood products manufacturer and building products distributor also reported a second quarter net income of $41.8 million, soaring 89% from a net income of $22.2 million for the same period in 2017.
Wood products sales at Boise Cascade, including sales to Building Materials Distribution (BMD), increased $75.2 million, or 21%, to $425.5 million for the three months ended June 30, 2018 from $350.3 million for the three months ended June 30, 2017.
The increase in sales was driven primarily by higher sales prices for plywood, I-joists and LVL (I-joists and LVL are collectively referred to as EWP), Boise Cascade said. In addition, increases in EWP sales volumes contributed to improved sales. Sales volumes for plywood were relatively flat compared with the same period in the prior year.
BMD’s sales increased $233.1 million, or 24%, to $1.2 billion for second quarter, from $980.7 million in the second quarter 2017. Compared with the same quarter in the prior year, the overall increase in sales was driven by sales price and sales volume increases of 15% and 9%, respectively, according to Boise Cascade.
By product line, commodity sales increased 33%, general line product sales increased 15%, and sales of EWP increased 18%, the company reported.
During the second quarter, the Boise, Idaho-based company completed the acquisition of wholesale building material distribution locations in Nashville, Tenn. and Medford, Ore. The company funded the acquisitions with cash on hand.
“Both of our businesses delivered outstanding results in the second quarter. Wood Products made very good progress on engineered wood products pricing and took advantage of exceptionally strong plywood markets. BMD executed well and captured market opportunities at both the local and national level,” said Tom Corrick, CEO of Boise Cascade. “I am very pleased that we further strengthened our nationwide distribution capabilities with the acquisitions in Nashville and Medford.”