Boise Cascade’s (BC) building materials distribution unit recorded a 49% jump in income in the third quarter from the year-earlier period, reaching $39.4 million, on an 18% increase in sales to $1.05 billion, BC reported today. The unit’s official segment income rose to 3.8% from 3.0%.
“Tailwinds from a strong commodity price environment,” particularly for wood products, propelled the gains for the distribution arm, CEO Tom Corrick said in a news release. Average net selling prices for lumber increased 15% from a year earlier, 13% for plywood, 5% for I-joists, and 4% for laminated veneer lumber (LVL). Those price hikes helped the distribution unit increase sales by 21% for commodity items and 16% for its I-joists and LVL combined. General line products increased 14%.
“The catastrophic storms in the southern U.S. created incremental plywood demand, and our sales and operations teams did a great job of responding to customer needs,” Corrick said. “We expect to experience seasonally slower demand in the fourth quarter, and commodity pricing will be subject to downside risks.”
Sales of BC’s wood products–much of which reaches dealers via BC’s distribution arm–rose 8% to $366.9 million in the July-to-September period, but income shot up 108%, hitting $24 million. This came even though sales by volume at the Boise, Idaho-based company fell 4% for lumber, 8% for I-joists, and 7% for LVL. Only plywood sales volumes grew, increasing 5% year over year.
