USG and Boise Cascade both logged increased sales, but how'd they do overall?
USG's building materials segment L&W Supply earned $1 million in the first quarter of 2014 on net sales of $300 million, compared to a loss of $1 million on $281 million in sales for the same period of 2013.
On the whole, the company logged operating profits of $66 million in the first quarter, compared to $49 million one year ago. Full-company net sales came to $850 million, a 4.4% increase over 2013 net sales of $814 million.
“Despite the harsh winter conditions across most of
“We are confident that the recovery in our end-markets remains intact and our business is well positioned for growth as opportunity improves,” Metcalf said. “We believe that most of the volume lost in the first quarter due to the weather will be realized over the balance of the year.”
Meanwhile, Boise Cascade reported 2014 Q1 total sales of $767.2 million, up 3% from last year's total Q1 sales of $744.8 million. Despite the gain in sales, Q1 net income fell sharply to $5.6 million from last year's adjusted net income of $12.2 million, which subtracts a $68.7 million 2013 tax income benefit.
“The first quarter presented unusually severe weather conditions in many parts of the country which reduced the demand for building materials, negatively impacted our operating costs, and, at times, disrupted rail and truck shipments to our customers," said Boise Cascade CEO Tom Carlile.
"Lower commodity wood products prices, particularly structural panels, also made the year-over-year quarterly sales and earnings comparisons challenging. However, our sales activity is picking up as we move into the second quarter and we still believe the housing recovery will continue to progress in 2014," Carlile added.
Builders FirstSource,who saw overall gains in Q4 2013, reported first quarter 2014 sales of $345.9 million, an 8.2% increase when compared with the first quarter 2013 sales of $319.7 million. Though sales increased, the company suffered a net loss of $3.3 million, an improvement when compared with the company's Q1 2013 loss of $11.8 million.
"Despite the extreme winter weather that slowed construction activity across our markets and housing starts being relatively flat, we successfully grew sales and Adjusted EBITDA on a year-over-year basis," said Builders FirstSource CEO Floyd Sherman. "Our sales increased 8.2 percent and Adjusted EBITDA increased 59 percent when compared to the first quarter of 2013."
"Lumber and lumber sheet goods prices rose sharply during the first quarter of 2013 while prices fell during the first quarter of 2014. Disruptions caused by the winter weather negatively impacted our operational efficiency. However, we were still able to surpass our 2013 first quarter results," said the company's CFO and senior vice president, Chad Crow.