A continued execution of its business model helped Boise Cascade deliver “solid financial performance” across its wood products and building materials distribution businesses in the second quarter, according to CEO Nate Jorgensen.
“As we close out the first half of 2023, we are encouraged by the resiliency of market demand despite ongoing economic uncertainties, and our long-term view of the strength of residential construction remains,” Jorgensen said. “The focus on working capital performance is a priority as the channel looks to manage inventory risk and reward, and we are uniquely positioned on a national scale to deliver the service levels in support of those efforts.”
Boise Cascade reported second quarter net income of $146.3 million on sales of $1.8 billion, compared with net income of $218.1 million on sales of $2.3 billion in the second quarter of 2022.
Wood products’ sales, including sales to Building Materials Distribution (BMD), decreased $5.7 million to $530.3 million for the three months ended June 30 2023. The decrease in sales was driven by lower plywood sales prices and lower I-joists sales volumes. The decreases were offset partially by higher plywood sales volumes, higher sales prices for LVL and I-joists, and higher LVL sales volumes. Wood products’ segment income fell $50.1 million year-over-year to $104.0 million, primarily due to lower plywood sales and an increase in depreciation and amortization expense due to the acquisition of two plywood facilities in July 2022.
BMD’s sales decreased 23% year-over-year to $1.64 billion in the second quarter, driven by sales price and volume decrease. By product line, commodity sales decreased 36% year-over-year, general line product sales decreased 8% year-over-year, and engineered wood product sales decreased 21% year-over-year. BMD segment income fell $55.7 million to $98.6 million in the second quarter, driven by a gross margin decrease of $49.8 million.
Boise-based Boise Cascade is a producer of engineered wood products and plywood and a wholesale distributor of building products.