Profits jump at Boise Cascade
Boise Cascade reported that fourth quarter 2019 sales increased 3% to $1.01 billion from sales of $1.065 billion in the fourth quarter 2018.
Sales for all of 2019 fell 7% to $4.63 million compared to full-year 2018 sales of $4.99 billion.
The Boise, Idaho-based company also posted $14.64 million for the quarter – a big swing from a net loss of $72.24 million for the same period a year ago. Profits for the full year soared to $80.92 million from a net income of $20.47 million in 2018.
Wood products sales dropped 4% to $296.3 million in the fourth quarter while falling 17% to $1.28 billion for the year.
Building material distribution sales increased 7% to $987 million in the quarter but slipped 3% to $4.14 billion.
The decline in wood products sales was attributed to lower sales prices and sales volumes for plywood along with lower sales volumes of lumber and particleboard due to the facility sales and closures in fourth quarter 2018.
In conjunction with its fourth quarter earnings report, Boise Cascade announced that it was closing its I-joist manufacturing facility in Roxboro, N.C.
During the fourth quarter the company also announced executive succession plans. Nate Jorgensen is the company’s new CEO, effective March 6, as Tom Corrick retires from his roles as CEO and director after nearly 37 years with Boise Cascade. Jorgensen will also fill Corrick’s seat on the board of directors.
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Bottom line: Despite sagging lumber prices sales volume, Boise Cascade turns strong profits in Q4 and 2019.
What the CEO said: “We had stronger than expected financial performance in the quarter as favorable weather allowed homebuilders to maintain solid activity levels, driving product demand,” said CEO Tom Corrick. “Our full year results illustrate our strategic progress since our initial public offering in 2013. Both businesses performed well given limited residential construction growth and persistent weakness in commodity wood products pricing. Our continued progress towards growing our engineered wood products and distribution businesses has increased our earnings stability.”
“As I move into retirement after nearly 38 years with the company, I'm pleased with our strategic progress as well as the strength of the leadership team and the culture of the company. The company's board is looking forward to supporting Nate Jorgensen and the team as they execute our strategy and focus on operational excellence, growing our businesses, and providing exceptional customer service."
Company info: Boise Cascade’s full fourth quarter 2019 and year-end report is available here.
Sales for all of 2019 fell 7% to $4.63 million compared to full-year 2018 sales of $4.99 billion.
The Boise, Idaho-based company also posted $14.64 million for the quarter – a big swing from a net loss of $72.24 million for the same period a year ago. Profits for the full year soared to $80.92 million from a net income of $20.47 million in 2018.
Wood products sales dropped 4% to $296.3 million in the fourth quarter while falling 17% to $1.28 billion for the year.
Building material distribution sales increased 7% to $987 million in the quarter but slipped 3% to $4.14 billion.
The decline in wood products sales was attributed to lower sales prices and sales volumes for plywood along with lower sales volumes of lumber and particleboard due to the facility sales and closures in fourth quarter 2018.
In conjunction with its fourth quarter earnings report, Boise Cascade announced that it was closing its I-joist manufacturing facility in Roxboro, N.C.
During the fourth quarter the company also announced executive succession plans. Nate Jorgensen is the company’s new CEO, effective March 6, as Tom Corrick retires from his roles as CEO and director after nearly 37 years with Boise Cascade. Jorgensen will also fill Corrick’s seat on the board of directors.
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Bottom line: Despite sagging lumber prices sales volume, Boise Cascade turns strong profits in Q4 and 2019.
What the CEO said: “We had stronger than expected financial performance in the quarter as favorable weather allowed homebuilders to maintain solid activity levels, driving product demand,” said CEO Tom Corrick. “Our full year results illustrate our strategic progress since our initial public offering in 2013. Both businesses performed well given limited residential construction growth and persistent weakness in commodity wood products pricing. Our continued progress towards growing our engineered wood products and distribution businesses has increased our earnings stability.”
“As I move into retirement after nearly 38 years with the company, I'm pleased with our strategic progress as well as the strength of the leadership team and the culture of the company. The company's board is looking forward to supporting Nate Jorgensen and the team as they execute our strategy and focus on operational excellence, growing our businesses, and providing exceptional customer service."
Company info: Boise Cascade’s full fourth quarter 2019 and year-end report is available here.