Builders FirstSource, Inc.,
Dallas, TX, a supplier and manufacturer of
structural and related building products for residential new construction,
reported third-quarter sales declined 11.5% to $569.9 million, and profit was
$17.3 million, down from $27.8 million in the same period last
year.
‘Our third
quarter results reflect the current challenges facing the homebuilding industry
as many homebuilders work through excess inventory,’ said CEO Floyd Sherman.
‘Our sales were down only 11.5% year-over-year despite an estimated 20.6%
decrease in housing starts in our markets and a 14.3% decrease in nationwide
commodity lumber and lumber sheet good prices.”
Many of the
company’s largest markets, including Texas, Georgia and the Carolinas, started
to experience year-over-year declines in housing starts after experiencing
year-over-year growth during the first half of the year. The company mitigated
commodity price declines to a 3.8% decrease to its total sales primarily through
pricing management and product mix.
Outlook
‘We believe we
can continue to mitigate a portion of the macroeconomic headwind by gaining
market share to grow faster than our underlying markets. We also believe we can
continue to increase sales through new operations,’ Sherman said. ‘However, we
expect that difficult market conditions affecting our business will continue to
have a negative effect on our operating results and year-over-year comparisons
through at least mid-2007.”
More details href=”http://investor.bldr.com/news/BLDR3Q06.pdf” target=_blank>here.
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