March 3, 2010

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Obama Outlines “Cash for Caulkers” Plan; NLBMDA Cautiously Favorable

President Barack Obama announced yesterday the details of "Homestar," a Cash for Clunkers-like rebate program designed to entice Americans to make their houses more energy efficient. The plan generated cautious support from the National Lumber and Building Material Dealers Association, which has been working hard to make certain the program benefits independent dealers. Under the proposal, homeowners could be eligible for up to $3,000 in rebates for purchases of efficient product upgrades or whole-house audits/retrofits. Obama wants the program included in a jobs package being drafted by Congress.
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BMHC's Ex-CEO Joins Stock Board; Dealer Plans 'Aggressive' Growth, Starting with Arkansas Dealer

Robert E. Mellor, formerly chairman and CEO of Building Materials Holding Corp, has joined the board of directors at Stock Building Supply. The addition will help Stock as it engages in "aggressive expansion," the company said. In a related development, Stock announced it will buy the assets of Arkansas' National Home Centers, which is now under protection from creditors under Chapter 11 of federal bankruptcy laws. Stock said it had entered into an agreement with National under which Stock will be a "stalking horse" bidder for National's assets pursuant to Section 363 of Chapter 11. That section allows for the sale of assets free of liens and other claims.
More on Mellor Announcement, Growth Plans
More on National Home Centers Deal

The ProSales 100 Survey Is on the Way

This year’s ProSales 100 survey will be online again soon, allowing you easier access and a quicker response time. Many of you will receive a link to the survey via e-mail in the next few days. Please follow the link to complete the survey and partake in this valuable yardstick that measures the nation’s premier building materials suppliers. If you haven’t received a link to the survey by Monday, March 8, please contact Senior Editor Andy Carlo at acarlo@hanleywood.com or at 845-337-4347. ProSales magazine requests that all surveys be completed by March 26. Results of the survey will be published, along with a comprehensive study, in the May issue of ProSales.
Not on last year’s list? Ask Andy to make certain you’re surveyed this year

ProBuild Names Michael Mahre Senior Vice President

ProBuild, the nation's largest pro dealer, has named former Building Materials Holding Corp. executive Michael Mahre as its new senior vice president of corporate development. In his new position, Mahre will be responsible for strategy, business development, and acquisitions, ProBuild said in a statement issued this morning.
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Dealers Question Value of Guaranteeing Prices

Second-hand reports that at least one major dealer has guaranteed prices to a customer for up to a year generated several comments--mainly negative--to ProSales, as well as a suggest that building material dealers get more willing to embrace the concept. "It's a no-win situation for a lumber dealer," one Texas dealer wrote. The comments were inspired by a column posted on the ProSales website recently in which veteran Florida LBM executive Don Magruder reported that he heard a regional LBM company approached a national builder and promised to keep lumber prices at the same level for six months. A recent survey by the Southern Building Material Association found most respondents said their quoted prices carried an expiration date of no more than two weeks. But one dealer was offering to set prices for 90 days for one builder.
Story
Magruder’s Commentary

Earnings Roundup: Boise Cascade, Ainsworth, Saint-Gobain, Trex

• Boise Cascade Holdings' wood products group recorded negative EBITDA of $9.4 million in the fourth quarter, sharply lower than its $24.7 million loss in the previous year, while BC's building materials distribution unit swung to a $1 million profit from a year-earlier $2.9 million loss. More
• Ainsworth Lumber Co., the Canadian producer of engineered wood products, reported a dramatic decline in net loss for the fourth quarter to C$12.4 million (US$11.8 million) vs. a net loss of C$156.7 million (US$149 million) in the year-earlier quarter. The improvement came despite a 12.6% drop in sales to C$67.1 mlliion (US$63.8 million) from a year-earlier C$79.1 million (US$75.2 million). More
• Saint-Gobain, the French construction materials giant whose subsidiaries include America's CertainTeed Corp., reported its North American units' operating income rose 8.9% in 2009 from 2008 on a same-structure, constant-currency basis. Sales in North America shrank to 4.86 billion billion euros ($6.6 billion at current exchange rates), down 11.5% from 5.5 billion euros ($7.46 billion) in 2008. When measured on a like-for-like structure basis, sales slipped 10.1%. More
• Trex Co.'s net sales jumped 75% in the fourth quarter to $51.2 million from $29.3 million a year earlier, but it was an unexpected tax windfall that appears to have made it possible for the make of decking, railing, fencing and trim to announce that it had swung to a $1.8 million net profit in the quarter from an $11.5 million loss in the fourth quarter of 2008. More

84 Stung by Orleans' Chapter 11 Filing

Orleans Homebuilders, the Bensalem, Pa.-based builder with 11 operating divisions in eight states, on Monday became the latest big builder to seek court protection from its creditors when it filed for Chapter 11 bankruptcy. The move particularly hurt 84 Lumber, to which Orleans owes $1.47 million, the Philadelphia Inquirer reported.
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North Pacific Group Sheds Assets

Oregon’s North Pacific Group is seeking to sell the inventor, receivables and equipment at locations in Indianapolis and Columbus, Ohio, to a subsidiary of Millman Lumber Co. of St. Louis. The deal would be worth $4.7 million, a Portland business journal said. The same Millman subsidiary also seeks to buy North Pacific’s Indianapolis real estate for $1.15 million. North Pacific collapsed early this year when its lenders pulled support from the distributor. Atlas Trading Acquisition LLC, a subsidiary of a private equity firm, has agreed to buy North Pacific’s food and agriculture and utility and construction units, as well as the Portland-based portions of its hardwood and industrial products unit
Portland Business Journal Story

The 20 Healthiest Housing Markets for 2010

Builder magazine, working with Hanley Wood Market Intelligence, has updated its list of the 20 healthiest housing markets for 2010. “Based on last year's performance, especially the level of building permits pulled in the fourth quarter, it's already clear that some markets are poised to grow at a faster pace this year than others in 2010,” Builder wrote. The index is based on several key factors known to drive housing, including the number of household formations, resale values, and job and income growth.
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Weatherization Programs Get a Slow Start

While some states—such as Delaware (which has weatherized more than one-third of its planned total), Mississippi (26.9%) and Ohio (21.2%)—seem to have their acts together better than others, five states—Alaska, Hawaii, Rhode Island, Texas, and Wyoming—and the District of Columbia had weatherized zero homes. (BUILDER)
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WebbThreads

• H. J. Opdyke Lumber Co., Frenchtown, N.J., has become a collection site for donations to relief efforts in Haiti. Opdyke also will provide trucks to haul goods from the area to a Haitian church in Queens, N.Y. Story
• Sid’s Hardware has used its move to a different part of Booklyn, N.Y., to convert itself into a pro-oriented building material dealer. Story
• Matheus Lumber has opened a sales office in Chandler, Ariz, a suburb of Phoenix.
• Lumbermens Mutual Corporation (LMC) is celebrating its 75th anniversary at its annual meeting this week in Salt Lake City. It recently updated its website to show a timeline of notable events over the years.
• Nemeon, a cooperative of independent roofing and siding distributors, hired David O’Donnell as vice president. He’ll be responsible for educational programs, member engagement, vendor relations, and developing regional initiatives.
• Spending on residential construction projects rose 1.3% in January from the month before to a seasonally adjusted annual rate of $260.8 billion, the Census Bureau said. Announcement
• Pocatello, Idaho’s School District 25 plans on using $1.5 million from this school year’s plant facility fund to buy a former Stock Building Supply property and turn it into an alternative high school. Story
• Officials for the Wisconsin Retail Lumber Association and the Northwestern Lumber Association signed documents last month to merge the two organizations.
• The National Roofing Contractors Association (NRCA), which concluded its annual convention in New Orleans last week, is showing increasing concern that other groups will elbow into their business. NRCA issued a position paper with a roofers union stressing that rooftop photovoltaic systems need to be installed by professional roofing contractors and, when necessary, licensed electricians.
• Giving your customers free coffee and doughnuts is one thing, but barbecue is another thing entirely. That’s the lesson learned by B&B Do-it Center, a hardware store in Camarillo, Calif., that promoted itself one recent weekday by giving out BBQ sandwiches. Ventura County officials swooped down on the store and shut the food stand out of concerns that it wasn’t abiding by health rules more closely associated with fulltime food establishments.

• H. J. Opdyke Lumber Co., Frenchtown, N.J., has become a collection site for donations to relief efforts in Haiti. Opdyke also will provide trucks to haul goods from the area to a Haitian church in Queens, N.Y.
• Bilco introduced the next generation of its 75-year-old Classic Series Steel Basement Door. The latest model includes a patented gas spring lift assistance that provides improved operation and simplifies installation. Bilco also partnered with Sherwin-Williams to introduce a new primer finish for the product.
• Fiberweb introduced a new version of its Typar weather-resistant barriers. Surround SR Underlayment offers secondary protection against moisture intrusion and is better than felt, the manufacturer says, for slip resistance and speed of installation.
• Ponderosa Building Materials Software announced that Lumbermens Merchandising Corp. designated Ponderosa as an approved supplier.
• As of Jan. 1, GAF-Elk has converted its final remaining plant from English-sized Timberline shingles to the more labor-efficient metric-sized shingles. On a typical 25 square roof, the smaller English Timberline shingle required about 78 shingles per square. With the new metric product, roofing contractors only need 64 shingles to cover the same square footage.
• Coleman Cable unveiled an upgraded website that featured stronger search and an improved catalog section.
• Simonton Windows will offer up to $150 toward the preparation of an person’s 2010 personal income tax return at participating H&R Block locations when that person buys 12 or more Simonton windows from select product lines that are eligible for the Federal Energy Tax Credit under 2009’s economic stimulus act.
• SolarFrameWorks will supply its proprietary Building Integrated Photovoltaic CoolPly solar roofing components to Johns Manville.
• Uniboard has been approved as a manufacturer of Ultra Low Emission Formaldehyde particleboard by the California Air Resources Board.
• ECi Software Solutions launched its Remote Server Backup service.
• GAF Materials will invest in a new manufacturing facility to produce asphalt shingles for customers in the U.S. Southeast regional market. Some of its equipment will be relocated from its former plant in Quakertown, Pa.
• TimberTech introduced ReliaBoard, a decking product “that offers consumers all of the benefits of low-maintenance without breaking the budget,” the company said.

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