Profits and net sales both contracted on a year-over-year basis in the third quarter for Boise Cascade. The company reported profits of $143.1 million, or $3.58 per share, compared to profits of $219.6 million, or $5.52 per share, in the prior-year period. Net sales fell to $1.8 billion in the third quarter, compared to $2.2 billion in the third quarter of 2022.
“The strength and flexibility of our balance sheet allows us to remain committed to our reinvestment and growth strategies while also rewarding our shareholders, as evidenced by our most recent special dividend announcement,” CEO Nate Jorgensen said in a prepared statement. “As we look forward to 2024, we are dedicated to supporting our vendor and customer partners and appreciate their ongoing confidence and trust in us. We are well positioned to navigate market uncertainties as near-term demand for new residential construction evolves.”
In the third quarter, wood products sales, including sales to building materials distribution (BMD), decreased 13% to $515.2 million on a year-over-year basis. Boise Cascade said the decrease in sales was driven by lower plywood sales prices, lower sales prices for I-joists and LVL, and lower LVL sales volumes. The decreases were partially offset in the quarter by higher plywood sales volumes.
Segment income for wood products fell to $99.6 million from $156.0 million, primarily due to lower I-joists and LVL and plywood sales prices, as well as lower LVL sales volumes. The decreases were partially offset by lower wood fiber costs and higher plywood sales volumes.
BMD sales decreased 15% to $1.67 billion for the third quarter, driven by sales price and sales volume decreases of 14% and 1%, respectively. Commodity sales decreased 20% year-over-year, general line product sales decreased 5% year-over-year, and engineered wood product sales decreased 21%.
BMD segment income fell to $97.1 million compared to $154.4 million in the third quarter of 2022. The decrease was driven by a gross margin decrease of $48.4 million, according to Boise Cascade.
In the third quarter, Boise Cascade also completed the acquisition of Brockway-Smith Company (BROSCO) for a purchase price of $168 million.
“We are pleased to have recently completed the acquisition of BROSCO and welcome their outstanding team to Boise Cascade,” Jorgensen said. “The acquisition supports BMD’s growth in the door and millwork business and brings us immediate scale in the Northeast markets.”
