Sales, profits rise at Foundation Building Materials
Strong commercial sales help boost third quarter for specialty building products distributor.
Foundation Building Materials (FBM) reported third quarter 2019 net sales increased 4.2% to $564.9 million from sales of $542.3 million in the third quarter 2018.
The Santa Ana, Calif.-based specialty building products distributor said the rise in sales was driven by strong commercial activity and product expansion into new markets.
The company also posted a net income from continuing operations of $12.7 million for the quarter compared to a net loss from continuing operations of $37.6 million for the same period a year ago.
On Oct. 1, FBM acquired the operations and assets of Joe’s Wallboard Supply Co. with one branch in Colorado Springs, Colo. Wallboard Supply was a distributor of drywall and accessories, steel framing, insulation, tools and fasteners. For the remainder of 2019, Wallboard Supply is expected to contribute $2 million to $3 million to net sales.
FBM also acquired The Supply Guy (TSG) on Oct. 1, 2019. TSG was a distributor of tools, fasteners, and other related products. TSG operated one branch in Lakewood, Wash. For the remainder of 2019, TSG is expected to contribute $0.8 million to $1.2 million to net sales.
FBM distributes wallboard, suspended ceiling systems, and metal framing throughout North America. The company operates more than 175 branches across the United States and Canada.
The bottom line: FBM turns a profit compared to a loss in the third quarter last year.
What the CEO said: “Our strong underlying profitability was the key driver of our third quarter results,” said Ruben Mendoza, president and CEO of FBM. “Despite continuing softness in Canadian markets and adverse weather affecting our net sales, we continue to see solid demand in our core non-residential construction markets, and we are on track to meet our financial objectives for the year.”
Company info: Foundation Building Materials’ full third quarter 2019 report can be read here.
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