Boise Cascade reported a net income of $302.6 million and net sales of $2.3 billion for the first quarter of 2022, compared to a net income of $149.2 million and net sales of $1.8 billion from the first quarter of 2021.
“Both businesses delivered tremendous financial results in the first quarter. I am very thankful for our associates and their continued focus on providing exceptional service to our customer and supplier partners,” Nate Jorgensen, Boise Cascade CEO, said in a news release. “As we move into the second quarter, we continue to experience steady demand across product lines and strong pricing on engineered wood and general line products. Our team has also done a great job of mitigating exposure to commodity price declines experienced early in the quarter. With the strength of our balance sheet we are intent on deploying capital to create shareholder value, including execution of our growth strategies.”
During the first quarter, wood product sales, including sales to building materials distribution (BMD), increased $126.6 million, or 29%, to $558.9 million during the fiscal first quarter. Boise Cascade said the increase in sales was driven primarily by higher net sales prices for I-joists and LVL and plywood, as well as higher sales volumes for plywood and LVL. Wood product segment income increased $93.1 million on a year-over-year (YOY) basis to $190.1 million in the first quarter. The company said the increase in income was due to higher engineered wood products and plywood sales prices.
BMD sales increased 29% YOY to $2.1 billion in the first quarter. The overall increase in sales was driven by sales price increases of 29%, with volume remaining flat, according to the company. By product line commodity sales increased 22%, general product sales increased 30%, and sales of engineered wood products increased 54% YOY. BMD segment income increased $105.7 million YOY to $225.9 million in the fiscal first quarter. The improvement in segment income was driven by a gross margin increase of $133.6 million, according to Boise Cascade.
The company said it expects capital expenditures in 2022 to total between $110 million and $130 million. The capital expenditures planned for 2022 include funding to complete organic expansions in Ohio, Kentucky, and Minnesota and install a new dryer at the company’s Chester, S.C. veneer and plywood plant.
Boise, Idaho-based Boise Cascade is a producer of engineered wood productsand plywood and a wholesale distributor of building products.
