Boise Cascade experienced a major swing in net income in the fourth quarter of 2019. The company posted a net income of $14.6 million in the fourth quarter of 2019 after posting a net loss of $72.24 million in the same period a year ago, according to the company’s fourth quarter earnings report. For the full fiscal year, Boise Cascade posted a net income of $80.92 million, an increase of more than $60 million compared to the 2018 fiscal year.
Boise Cascade also reported fourth quarter sales increased 3% year over year (YOY) to $1.01 billion. Wood product sales decreased 4% YOY to $296.3 million in the fourth quarter, driven by lower sales prices and sales volumes for plywood. The lower wood product sales in the quarter were also related to the sale of the company’s hardwood plywood facility in Moncure, N.C., and the permanent curtailment of LVL product at the company’s Roxboro, N.C., facility. Building materials distribution sales increase $64.7 million YOY in the fourth quarter to $987.0 million. The increase in sales was primarily driven by a sales volume increase of 11%, which was partially offset by a sales price decrease of 4% in the quarter. Excluding the positive impacts from acquisitions, building materials distribution sales in the fourth quarter would have increased 4%, according to Boise Cascade.
For the full fiscal year, net sales fell 7% to $4.63 billion compared to net sales of $4.99 billion in 2018. Wood products sales for the full fiscal year decreased 17% to $1.27 billion. The decrease in sales was driven by lower sales prices and sales volumes for plywood and lower sales volumes for I-joists. Almost one-third of the decrease was attributable to lower sales volumes of lumber and particleboard due to facility sales or closures in 2018. Building materials distribution sales for the full fiscal year decreased 3% to $4.14 billion, driven primarily by a decrease in sales prices.
“We had stronger than expected financial performance in the quarter as favorable weather allowed homebuilders to maintain solid activity levels, driving product demand,” CEO Tom Corrick said in a news release. “Our full year results illustrate our strategic progress since our initial public offering in 2013. Both businesses performed well given limited residential construction growth and persistent weakness in commodity wood products pricing. Our continued progress towards growing our engineered wood products and distribution businesses has increased our earnings stability.”
Also in the fourth quarter, Boise Cascade announced an executive succession plan. Nate Jorgensen will assume the role of CEO and president, effective March 6 as Corrick retires from his role as CEO after 37 years with the company. Jorgensen will also fill Corrick’s seat on the board of directors.