Net sales for Boise Cascade increased 18% on a year-over-year (YOY) basis in the third quarter of 2021 to $1.9 billion. While sales were higher than the third quarter of 2020, higher materials, labor, and other operating expenses in the third quarter of 2021 drove down net income, which decreased 11% YOY to $91.7 million in the quarter, according to the company’s quarterly earnings report.
“Strong sales of our engineered wood and general line products helped to mitigate the negative impact of historic declines in commodity products pricing during the quarter. Our associates’ performance was outstanding in the face of a very challenging backdrop,” Nate Jorgensen, CEO of Boise Cascade, said in a prepared statement. “Looking forward, we are optimistic about the demand environment for new residential construction for the balance of this year and 2022.”
Wood product sales, including sales to building materials distribution (BMD), increased $133.6 million on a YOY basis in the quarter to $497.3 million. The increase in sales was driven by higher plywood prices, as well as higher net sales prices and sales volumes for I-joists and LVL. Boise Cascade said improved lumber sales prices also contributed to the positive growth in sales.
Segment income for wood products increased $56.0 million during the third quarter of 2021, primarily due to higher LVL, plywood, and lumber sales prices, as well as higher LVL sales volume. The improvements were partially offset by higher wood fiber costs and lower margins on inventory purchased for resale through certain customer programs, according to the company.
Boise Cascade reported BMD sales increased 20% YOY to $1.7 billion for the third quarter. The increase in sales was driven by a sales price increase of 23%, offset by a sales volume decrease of 3%. Segment income for BMD decreased $91.3 million in the third quarter, driven by a gross margin decrease of $100.5 million, resulting from a decline in commodity prices during the third quarter.
Boise, Idaho-based Boise Cascade is a producer of engineered wood products and plywood and a wholesale distributor of building products.
