Boise Cascade reported a net loss of $72.2 million during the fourth quarter of 2018, compared to a net income of $19.1 million in the fourth quarter of 2017. The building products distributor also saw its full-year net income decrease 75% from $83.0 million in 2017 to $20.5 million, according to its Fourth Quarter Earnings Report.
The Boise, Idaho-based company said its fourth quarter results were negatively impacted by $24.0 million of pretax impairment and sale-related losses related to the pending sale of its hardwood plywood facility in Moncure, N.C. Results were also negatively impacted by $55.0 million and $2.8 million, respectively, of pretax accelerated depreciation and other curtailment related costs due to the permanent curtailment of LVL production at the company’s Roxboro, N.C., facility.
Full-year results were additionally negatively affected by $11.5 million of pretax impairment and sale-related losses related to the sale of three wood products facilities in Oregon and $23.3 million of pretax pension settlement charges.
The distributor posted net sales of $1.1 billion in the fourth quarter, matching its net sales for the fourth quarter of 2017. Net sales for the full year increased nearly $0.6 billion to $5.0 billion in 2018.
Wood products sales for Boise Cascade decreased 7% YOY to $307.1 million in the fourth quarter. The distributor primarily attributed the decline to a decrease in sales prices for plywood and decreased sales resulting from the sale of the company’s particleboard facility and the additional sale or closure of three sawmills in 2018. Sales of wood products for the full year increased 12% YOY to $1.5 billion.
Building materials distribution sales decreased $9.5 million YOY to $922.2 million in the fourth quarter of 2018. Sales price decreases primarily contributed to the overall decrease in sales. Sales of building materials distribution for the full year increased 14% YOY to $4.3 billion.
