Market Slump Prompts Major Cuts at Stock
Stock Building Supply, America's No. 2 LBM dealer, revealed in October it will close 86 facilities, cut 3,000 jobs, and exit 16 markets in six states, leaving it little more than half the size it was at the housing market's peak.
The cuts are the result of a strategic review that Wolseley Plc, Stock's British-based parent, launched following its report in September that Stock recorded an operating loss of $246 million in the year ended July 31. Stock gets more than 70% of its revenue from new residential construction, particularly by America's biggest tract builders, so it is especially sensitive to the severe slump in that part of the U.S. housing market.
Times Get Tougher For Builders FirstSource
Builders FirstSource reported third-quarter 2008 net sales fell 30.3% to $288.3 million from $413.9 million in July through September 2007. The company also reported a net loss of $18.9 million for the quarter compared to a net loss of $12 million during the same period last year.
The company said a drop in housing activity within its markets drove the sales decrease, an estimated 39.4% negative effect on sales. It also said lower market prices for commodity lumber and lumber sheet goods had a 1.4% negative effect on sales.
During the quarter, BFS closed locations in South Carolina and Ohio. The company also announced it would exit the New Jersey market and close five facilities.
BMHC Trading Moves to OTC; Firm Posts Loss for Third Quarter The New York Stock Exchange (NYSE) suspended trading of Building Materials Holding Corp. (BMHC) common stock Oct. 29 and delisted the company. As a result, BMHC moved trading of its common stock to the OTC Bulletin Board.
NYSE said BMHC failed to meet minimum market capitalization standards because BMHC's 30-trading-day average closing price of common stock was less than $1.
One week later, BMHC reported a net loss of $45.2 million in the third quarter on a 39% drop in sales to $364 million. That's a swing from the net income of $4.2 million reported in last year's third quarter, when sales totaled $594 million.
Do It Best Honors Those Who Do It Proud
Do it Best Corp. presented purchasing awards to its top-performing member-owners at the co-op's Member & Vendor Excellence Breakfast at the 2008 Do it Best October Market in Indianapolis. Winners include:
- Lumber Purchases: Single Store, Christensen Lumber Inc., Fremont, Neb.; Multiple Stores, R.P. Lumber Co., Edwardsville, Ill.
- Commodities Purchases: Single Store, Oswald Lumber, Leesville, S.C.; Multiple Stores, R.P. Lumber Co.
- Highest Total Purchases: Single Store, Keim Lumber, Charm, Ohio; Multiple Stores, R.P. Lumber Co.
- Highest Rebate: Multiple Stores, R.P. Lumber Co.
Dunkley Lumber Ltd. was honored with a Departmental Vendor of the Year award in the Lumber category.
84 Lumber closed 20 stores Oct. 20 in additional consolidation moves following about 80 previous store closings in the last year. Nine other locations were closed Sept. 30 and Oct. 6. ...McCoy's Building Supply reopened its Galveston, Texas, store in late October after taking in nearly three feet of water when Hurricane Ike struck the barrier island city in September. ...Fingerle Lumber Co. of Ann Arbor, Mich., changed its plans to close after yard workers agreed to drop their union representation and switch from a company-paid pension to a 401(k) plan. ...USG Corp. reported a net loss of $40 million in its third quarter on net sales of $1.2 billion. That contrasts with net earnings of $7 million on sales of $1.3 billion in 2007's third quarter. ...Boise Cascade reported a third quarter net loss of $207.6 million while sales at the company's building materials distribution business during the third quarter were $584 million compared with $687 million during the same quarter last year. ...BlueLinx Holdings, the Atlanta-based building products distributor, appointed George Judd as its new CEO. Judd served as president and chief operating officer of the company since 2004 and replaces interim CEO Howard Cohen. On Oct. 29, the company reported a third-quarter net loss of $2.6 billion, while revenues declined 28.5% to $727 million compared with revenues of $1.02 billion in the third quarter of 2007 ...St. Louis-based Huttig Building Products says its net loss deepened to $7.7 million in the third quarter from a $100,000 loss in the year-earlier period. Net sales from July through September fell 22% to $182.8 million from $233 million in the same quarter of 2007. ...Erdman plans to build a manufacturing and distribution plant in Wenaukee, Wis. ...U.S. Lumber, the building materials distribution group out of Atlanta, has purchased the assets of Cardinal Forest Products, a wholesale distributor of lumber products based in Statesville, N.C. Terms of the transaction were not disclosed. Cardinal's Statesville, N.C., distribution center will be closed and product will be shipped out of U.S. Lumber's locations in Greenville, S.C., and Raleigh N.C. ....Leviton will open a new distribution center in Lebanon, Tenn., in February. ...Ultra Aluminum Manufacturing and Enduris have entered into a strategic alliance that lets each offer the other's products. ...Veka Inc. will close a fence, deck, and rail facility in Youngstown, Ohio.
The Western Building Material Association has named Ed Waite, president of Spenard Builders Supply of Anchorage, Alaska, as its Distinguished Dealer of the Year. McFarland Cascade of Tacoma, Wash., was named Supplier of the Year. ...Three northeastern regional LBM groups have named their Lumber Persons of the Year: Robert Sanford, president of Sanford & Hawley Inc., Unionville, Conn.; Kimberley Williams, vice president of retail operations, Williams Lumber, Rhinebeck, N.Y.; and Lang Durfee, COO, Bethel Mills, Bethel, Vt. ...Universal Forest Products announced Oct. 16 that Western Division president Pat Webster will become president and COO, effective Jan. 1. ...Ben Hershey of Alliance TruTrus has become president of the Structural Building Components Association, formerly known as the Wood Truss Council of America. ...Timber Products Co., Springfield, Ore., has appointed Roger Rutan as its vice president of sales and marketing. ...ODL Inc., Zeeland, Mich., promoted Jeff Mulder to corporate president and COO. ...Leonard Taylor III has been elected to the board of directors for the Cedar Shake and Shingle Bureau of Canada and the United States. He runs Taylor Forest Products of Marshfield, Mass. ...Sloan Valve Co. appointed Kirk Allen, James Allen, and Graham Allen to the newly created Office of the President. Sloan's board elected Charles Allen, who had been president and CEO, as executive chairman. ...Owens Corning has named Karel Czanderna as group vice president of building materials. ...MiTek named vice president and CFO Ron Burkhardt to the additional position of executive vice president. Also, Terry Nicholson joined the company as senior vice president for global software and technology, Dick Marriott was promoted to president of MiTek Industries Inc. and made responsible for U.S. operations, and Gene Toombs IV was promoted to senior vice president-operations.
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Number of trees to be destroyed in and around Worcester, Mass., after discovery of an invasion of the Asian Longhorned Beetle. Officials fear an infestation could decimate the New England timber industry, among others.
Source: The Associated Press
The rise in existing home sales in September, an annual pace of 5.18 million, up from the August reading of 4.91 million. It was the largest month-to-month increase since July 2003.
Source: CNN.com, National Assoc. of Realtors