Net sales and net income declined on a year-over-year basis in the fourth quarter for Boise Cascade. Net income fell 31% to $117.4 million and net sales decreased 9% to $1.6 billion in the fiscal fourth quarter for the company. For the full year 2022, net income increased 20% to $857.7 million and sales increased 6% to $8.4 billion.
“In addition to our financial results, we had strong performance in safety during a challenging period. I am also very pleased that we were able to take meaningful steps via acquisition and organic initiatives that will allow us to expand our engineered wood products (EWP) capacity and further grow our distribution capabilities,” CEO Nate Jorgensen said in a news release. “Our balance sheet remains well positioned for us to execute the growth initiatives started during 2022. In addition, we have the flexibility to further demonstrate our balanced approach to capital allocation, including the ability to pursue additional growth initiatives to align with our strategy.”
Boise Cascade reported wood products sales, including sales to building materials distribution (BMD), decreased 5% on a year-over-year basis to $425.6 million in the fourth quarter. The decrease in sales was driven by lower sales volumes for I-joists and laminated veneer lumber. EWP volumes decreased due to a decline in housing starts and “significant inventory destocking” through Boise Cascade’s customer channel. Negative trends were partially offset by higher EWP sales prices and higher plywood sales volumes. The increase in plywood sales volumes was due to the acquisition of Coastal Plywood and its plywood manufacturer operations. Segment income for wood products decreased $23.4 million to $75.0 million in the fourth quarter, due to lower EWP sales volumes and higher wood fiber costs and other manufacturing costs.
For the full fiscal year, wood products sales increased 7% to $2.1 billion, driven by higher EWP sales prices and higher plywood sales volumes, partially offset by lower plywood sales prices and EWP sales volumes. Wood products segment income increased $44.0 million for the full year to $575.2 million in 2022, due to higher EWP sales prices.
For the fiscal fourth quarter, BMD sales decreased 12% to $1.4 billion, driven by a sales volume decrease of 14%, offset by sales price increases of 2%. Commodity sales decreased 17% year-over-year in the quarter, general line product sales decreased 2%, and sales of EWP decreased 19%. BMD segment income decreased $45.5 million year-over-year to $92.5 million in the fiscal fourth quarter, driven by a gross margin decrease of $39.7 million.
For the full fiscal year, BMD sales increased 7% to $7.6 billion in 2022, driven by sales price increases of 11%, partially offset by a sales volume decrease of 4%. Commodity sales decreased 7% in 2022, general line product sales increased 17%, and sales of EWP increased 28%. BMD segment income increased $146.0 million to $627.1 million for the full 2022 fiscal year.
Boise Cascade is a producer of engineered wood products and plywood and a wholesale distributor of building products.
