Boise Cascade reported net income of $218.1 million on sales of $2.3 billion for the fiscal second quarter of 2022, compared with net income of $302.6 million on sales of $2.4 billion in the second quarter of 2021.
“We recently completed the acquisition of Coastal Plywood Company, and I am pleased to welcome our new associates to the Boise Cascade team. The acquisition represents a major step forward in supporting the growth of our engineered wood products (EWP) capacity and further leveraging our integrated business model. We are focused on successfully integrating the new operations into our system,” Nate Jorgensen, CEO of Boise Cascade, said in a news release. “Both of our businesses continued to operate well during the second quarter, and our financial results reflect that fact. Economic uncertainty and expectations of softening demand for new residential construction are a reality as we move through the balance of the year.”
During the second quarter, wood product sales, including sales to building materials distribution (BMD), decreased 10% to $536.0 million on a year-over-year (YOY) basis. The decrease was driven primarily by lower sales prices and sales volumes for plywood and lower sales volumes for I-joists and laminated veneer lumber, according to Boise Cascade.
Income for the wood products segment decreased from $213.8 million in the second quarter of 2021 to $154.1 million in the second quarter of 2022. Boise Cascade attributed the decrease in income to lower plywood sales prices and higher per-unit labor, wood fiber, and other manufacturing costs due in part to lower plywood and EWP sales volumes.
Building materials distribution (BMD) sales decreased 2% year-over-year to $2.1 billion in the second quarter, driven by a sales volume decrease of 4%, according to Boise Cascade. Commodity sales decreased 27% YOY, general line product sales increased 34% YOY, and sales of EWP increased 59% YOY.
BMD segment income decreased $52.0 million to $154.3 million in the fiscal second quarter. The decrease was driven by lower sales volumes and a gross margin decrease of $44.5 million, according to the company.
Boise, Idaho-based Boise Cascade is a producer of engineered wood products and plywood and a wholesale distributor of building products.
