Boise Cascade (BC) reported today that its building materials distribution segment’s income quadrupled in the first quarter to $13.4 million from $3.3 million in the year earlier period on a 15% rise in sales to $717.3 million.
However, those results weren’t enough to overcome a slump in commodity prices that left the parent company reporting only $4.95 million in net income in the January-to-March period, down from $7.62 million the year before. Average net selling prices for plywood fell 16% in the quarter from the year before, while lumber was 12% cheaper. In contrast, prices for laminated veneer lumber (LVL) rose 2% and for I-joists the prices grew by 4%.
The distribution segment’s volume grew by 19% but overall prices fell by 4%, producing the 15% sales gain. Commodity sales increased 12%, general product line sales increased 14%, and sales of engineered wood products increased by 25%.
Apropos those engineered product sales gains, the company noted that its acquisition of Georgia-Pacific’s engineered lumber facilities in Thorsby, Ala., and Roxboro, N.C., was completed on March 31. With that deal, GP exited the engineered lumber business
BC said the distribution segment’s EBITDA–earnings before interest, taxes, depreciation, and amortization–swelled to $16.6 million from $6.1 million.
