Boise Cascade reported net income declined on a year-over-year basis in the second quarter. The company posted net income of $112.3 million in the second quarter of 2024, or $2.84 per share, down from $146.3 million, or $3.67 per share, in the prior-year period. Net sales ($1.8 billion) were essentially flat compared to the prior-year period.
“Our team delivered solid financial performance in the second quarter while operating in a somewhat tepid demand environment influenced by elevated mortgage rates and economic uncertainties,” CEO Nate Jorgensen said in a prepared statement. “In addition, spending on our organic growth projects progressed as expected and returns of capital to our shareholders were again in clear focus, including the recent announcement of a meaningful special dividend that will fund in September.”
Wood product sales, including sales to building materials distribution (BMD), decreased $40.5 million to $489.8 million for Boise Cascade in the second quarter. The decrease was driven by lower plywood sales volumes, as well as lower sales prices for laminated veneer lumber (referred to as engineered wood products).
Wood products segment income decreased $31.3 million to $72.8 million in the second quarter. The decrease in segment income was due to lower EWP sales prices, as well as higher wood fiber and conversion costs.
BMD’s sales increased 1% to $1.7 billion in the second quarter. The increase was driven by sales volumes increases of 2%, offset partially by sales price decreases of 1%. Segment income decreased $13.2 million to $85.4 million in the quarter. The decrease in segment income was driven by increased selling and distribution expenses and depreciation and amortization expense of $10.9 million and $4.4 million, respectively.
“While the near-term demand environment is uncertain, I remain confident in our ability to deliver quality results through the second half of the year,” Jorgensen said. “Our proven team will accomplish this by leveraging our outstanding manufacturing and wholesale distribution network, and our relentless drive to deliver superior value to our customer and vendor partners.”
