A slide from BlueLinx's 2Q15 earnings report

BlueLinx's net income slid to $2.9 million in the second quarter, a 9.4% drop from the year-earlier period, as sales fell 3% to $515.7 million, primarily because of price cuts for lumber and OSB, the Atlanta-based distributor reported today.

"Overall, revenue was significantly impacted by structural price decreases of 6.5%, which were partially offset by a structural unit volume increase of 0.9%, primarily in the lumber product category," the company said in a statement. That same quoted Mitch Lewis, BlueLinx's president and CEO, as saying the company  "saw improvement in June following a particularly wet April and May, and we strive to keep that momentum going for the remainder of the year."

Gross profit for the quarter ending July 4 dropped $2 million from 2Q2014 to reach $60.0 million, causing the gross margin to slip to 11.6% from 11.7%. Things could have been worse had BlueLinx not kept a tight rein on expenses; its selling, general, and administrative expenses shrank by 7.7% to total $50.7 million. The distributor now has $5 million more available on its credit line than it did at the start of this year.