BlueLinx Holdings Inc., managed to stay in the black during the second quarter of 2009 with a net income of $600,000. But for the third quarter, the Atlanta-based LBM distributor reported a net loss of $13.5 million, compared to a net loss of $2.6 million in the third quarter a year ago.
The company also reported that revenues fell 38% in the third quarter to $449 million from $727 million in the same period last year. Sales volume fell 32% in the quarter. BlueLinx attributed the decline to a 31% decline in housing starts during the period and "lower average structural product prices."
The company sees a silver lining in a down housing market, according to BlueLinx CEO and president George Judd.
"Although demand remains near all time lows, I believe that 2009 represents the bottom of this prolonged decline," Judd said. "Long-term demand for housing remains favorable and we are now focused on increasing our share of the market."
Despite a weak market, BlueLinx reported a 12.3% increase in gross margins. However, gross profit for the quarter was $55.3 million, down 33.6% from $83.2 million in the third quarter 2009.