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Boise Cascade ended the 2023 fiscal year with lower profits in both the fourth quarter and full year. The company reported fourth quarter profits of $97.5 million, down from $117.4 million a year ago, and full fiscal year profits of $483.7 million, down from $857.7 million in 2022.

The company reported fourth quarter sales of $1.6 billion, up marginally from the prior-year period, and full-year sales of $6.8 billion, down from $8.4 billion in 2022.

“As we look forward to 2024, we are optimistic about new single-family residential construction activity and have great confidence in our people to execute strategy independent of the market backdrop,” Nate Jorgensen, Boise Cascade CEO said. “In addition, our balance sheet remains strong, and we remain committed to our balanced approach to capital allocation and look forward to executing our reinvestment and growth projects included in our expanded capital plan.”

Boise Cascade’s wood products’ sales, including sales to building materials distribution (BMD), increased 6% on a year-over-year basis to $449.7 million in the fourth quarter. The increase was driven by higher sales volumes for I-joists and laminated veneer lumber (referred to by Boise Cascade as EWP). Wood products’ segment income decreased $10.9 million to $64.1 million in the fourth quarter, primarily due to lower rEWP and plywood sales prices, accelerated depreciation of $6.2 million for the previously announced indefinite curtailment of lumber production in Chapman, Ala., and an increase in other manufacturing costs.

For the full year, wood products’ sales decreased 9% to $1.9 billion, driven by lower sales prices across all product lines and lower EWP sales volumes. Full-year segment income decreased $238.1 million to $337.1 million, due to lower plywood and EWP sales prices as well as lower EWP sales volumes.

Boise Cascade’s BMD sales increased 3% to $1.5 billion in the fourth quarter, due to sales volume increases of 13%. By product line, commodity sales decreased 8%, general line product sales increased 13%, and EWP sales increased 10%. BMD segment income for the quarter decreased $22.0 million to $70.5 million, due to increased selling and distribution expenses of $12.9 million.

For the full fiscal year 2023, BMD sales decreased 19% to $6.2 billion, due to sales price and volume decreases of 16% and 3%, respectively. Commodity sales decreased 32% year-over-year, general line product sales decreased 4%, and EWP sales decreased 16%. BMD segment income decreased $291.3 million to $335.8 million. The decrease was driven by a gross margin decrease of $276.0 million, resulting from gross margin declines on EWP and commodity products and lower sales volumes across all product lines compared with 2022, according to Boise Cascade.