February 3, 2010

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Beacon Roofing's Net Shrinks 58% in Late 2009

Beacon Roofing Supply's net profit in its fiscal first quarter ended Dec. 31 shrank 58% to $7.8 million on a 20.6% slump in sales to $367.7 million, America's fifth-biggest pro-oriented LBM company reported today. Peabody, Mass.-based Beacon gave four reasons why net sales shrank: There was less re-roofing activity in areas affected by Hurricane Ike, a "significant decline" in non-residential roofing activity, continued weakness in residential roofing activity, and "continued weak complementary product sales in most markets."
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Dealers Set Plans To Open Four New Stores; ProSales' Openings List Hits 100

Four reports of planned or recently completed openings of LBM facilities have pushed to 100 ProSales’ list of store openings since January 2008. Sierra Vista Lumber & Steel opened Monday in Alamosa, Colo. (story), while Oregon’s Roofline Supply unveiled a new branch in Sacramento, Calif. (story), the same day. Later this month, Stenerson Lumber plans to open a yard in Crosby, Minn., at a site that had previously been occupied by ProBuild. And the former Giles Builders Supply in Albany, Ga., has been acquired by Short & Paulk Supply of Tifton, Ga., and will re-open in mid-April.
ProSales' List of Store Openings

Final Week to Respond to Our Lumberyard IT Systems Survey, Win $100

Just one more week remains for you to take part in an online survey to get a sense of how your company feels about the software systems you’re using today. The survey is a joint production of ProSales and Rader Solutions, the company run by “Rader’s Edge” columnist Chris Rader. It’s a pretty technical survey, so the information technology managers are urged to take part. What works well? What frustrates you? All participants who provide contact information will get the invaluable written comments AND become eligible to win a $100 gift card. We’ll take entries through Tuesday, Feb. 9.
Take the Survey

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DEWALT® Introduces Professional Grade Levels DEWALT® is proud to announce the launch of a new line of box levels. Innovations include the patent-pending QuadBox chassis, Dual Density endcaps, Lexan® vial housings, and the revolutionary X-Brace. These all combine to enhance strength and guarantee accuracy. Visit the website for ordering information and a special offer. www.dewaltlevel.com/ProSales2.

BMHC's Final Ch. 11 Loss: $18.8M

What is now BMC Select racked up $18.8 million in losses in December, its final month in Chapter 11, the company reported in a bankruptcy court filing in late January. That brings to just under $50 million the total losses that the former Building Materials Holding Corp. incurred during the six months it used to reorganize and re-emerge in January as a new LBM business. That $50 million also is the amount of tax benefits that the company expected to reap as a result of a change in tax laws.
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National Home Centers Wins Clearance To Sell 3 Branches

A federal bankruptcy judge yesterday approved a request by National Home Centers to hire a consultant to help it stage "store closing sales" at its branches in Bentonville, Clarksville, and Little Rock, Ark. The dealer also sought today to have a lease canceled on property it was renting, and it has reported it recorded a $470,740 loss in December, its first month under Chapter 11.
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Bison Posts $476K Loss for December, $3.4M Loss for Back Half of '09

Bison Building Materials, the Houston-based LBM dealer that entered Chapter 11 half a year ago, posted a net loss of $457,887 for December. That brings its losses under bankruptcy-law protection from creditors to $3.4 million, and likely means Bison's net losses for 2009 neared $10 million. Also recently, the company won a judge's permission to extend its debtor-in-possession creditor facility and to hire WoodRock & Co. to help it find investors or otherwise raise capital.
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Versatex Trimboard presents the Product brochure Versatex Trimboard now offers a product brochure that contains all trimboard products in one booklet for free. Thus making it easier for builders, architects and contractors to find products all in one source. It contains attractive product images, image ideas and The Advantages to using Versatex. Click here to download this free booklet or call 724.857.1111.

Sales Slump in 4Q at USG's U.S. Product, Distribution Units

United States Gypsum Co., the American branch of USG Corp., reported its net sales dropped 32% in the fourth quarter to $315 million. But a $97 million litigation settlement enabled it to record a $57 million operating profit for the final three months of last year. Meanwhile, USG's building products distribution unit--L&W Supply Corp. and its subsidiaries--recorded an even worse sales downturn: a 38% slump in the fourth quarter from the year-earlier period to reach $270 million.
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Should Sales Reps Wear Ties? Most Dealers Say No

We received a number of responses to our request for comments last week about whether it's a good thing for inside sales reps to wear ties. The question was sponsored by the practice at Schoeneman's Building Materials Center in Sioux Falls, S.D. Owner Al Schoeneman says ties on inside sales people show the workers are professionals. But one California dealer says his part of the country is so anti-tie that when a sales rep walks in wearing a cravat, "we inform him that he is overdressed for a lumberyard and may want to remove the tie if he wishes to continue his call." Some said wearing ties in places with power equipment could be dangerous. "Let's leave ties for bankers, morticians, insurance people and politicians," one sales rep wrote. And Bruce Bernard, vice president of Bernard Building Center in Hale, Mich., noted that his brother Bryon used to wear ties. "Once while my brother was still wearing his tie to work, Dad needed someone to help put the pontoon in at the lake," Bruce recalled. "My brother volunteered and drove the pontoon across the lake from the boat launch to the cabin. One of the ladies on the lake saw him driving the pontoon with his tie on and informed him that they just weren’t that formal on the lake."

WebbThreads

• Jason Plummer, vice president of business development at R.P. Lumber, Edwardsville, Ill., holds a tiny lead in the race to become the Republican nominee for Illinois’ next lieutenant governor. He has declared victory. (See Chicago Tribune coverage.)
• Parksite Inc. acquired the DuPont Surfaces distribution assets of L.E. Smith Co., Bryan, OH.
• Parker Lumber, Bremerton, Wash., closed on Jan. 28. Peninsula Door & Millwork, which has the same owner as Parker, remains open for business. Story
• Demand for countertops in North America will pick up during the next five years, averaging 3% annual increases and reaching 63.6 million square meters in 2013, the Freedonia Group forecast yesterday. Meanwhile, the pace of increased U.S. demand for construction chemicals—including caulks, adhesives, and sealants—was expected to slow over the next five years compared with the past five, largely because of a slowdown in their use in industrial settings. The housing market will lead what growth there is, Freedonia said.
• APA, The Engineered Wood Association¸updated its “APA System Report: Design for Combined Shear and Uplift from Wind.” Click here to download the free document.
• Raymond Building Supply donated and installed $3,000 worth of new applieances at a Lehigh Acres, Fla., that was burglarized while its owner was in Iraq serving with the Marines. Story
• Robert Taylor, president and CEO of Do it Best Corp.¸ was elected chairman of the board of the National Association of Wholesale-Distributors.
• Two federal agencies have issued interim guidance on how to identify homes where problem drywall may have corroded metal.

• Cadsoft Corp. released Envisioneer 6.0, an upgraded version of its building information modeling software.
• CertainTeed Corp. introduced EnergyEdge insulating concrete slab edge forms.
• Georgia-Pacific Gypsum doubled to 12 months the weather exposure limited warranty on its its DensArmor Plus interior panels.
• Parksite has begun to distribute the Aerix Roof Ventilation System from bpEnnovations, a new developer of innovative building products.
• ProSpec introduced Floor Patch Pro, a polymer modified, cement-based patching compound. It also expanded its line of flooring repair products with the release of Moisture Vapor Reducer.
• General Woodcraft Inc. expanded its warehouse facilities in New London, Conn., giving it more thanr 60,000 square feet of storage and distribution space. It also hired Connie Eckman as an outside sales representative.
• Eagle Materials posted a 58% drop in net earnigs to $4.7 million in its fiscal third quarter ended Dec. 31. Revenues dropped 24% from the year-earlier period to total $104.6 million. Eagle’s gypsum wallboard and paperboard group saw earnings shrink 86% to $900,000 as revenues dropped 24% to $58.3 million. Announcement
• Black & Decker said its net earnings for the fourth quarter shrank 22.4% to $33.9 million. Those earnings included $58.8 million of pretax expenses related to its proposed merger with The Stanley Works. Overall sales fell 6% to $1.3 billion, while sales in the power tools and accessories segment dropped 11%. Announcement

Do you have a question, a tip, or a sage piece of wisdom? Feel free to contact ProSales' editor, Craig Webb, at cwebb@hanleywood.com.

And don't forget you can find previous ProSales Business Updates online!