Tough winter results in big Q2 loss for Beacon Roofing
A prolonged, rough winter took its toll on Beacon Roofing Supply as the roofing and building materials distributor reported a second quarter 2018 net loss of $72.7 million, from a net loss of $9.4 million in the second quarter 2017.
For the first half of 2018, the Herndon, Va.-based company reported a net loss of $5.1 million, falling from net earnings of $11.1 million in the first 6 months of 2017.
The losses occurred despite Beacon Roofing reporting second quarter sales of $1.43 billion – a company record and a 64% increase from sales of $871 million for the second quarter a year ago. For the first 6 months of 2018, Beacon reported sales of $2.55 billion, a 36% increase from sales of $1.87 billion for the first half of 2017.
During the second quarter, residential roofing product sales increased 19.7%, non-residential roofing product sales increased 35.6% and complementary product sales increased 263.2% over the prior year. But existing markets sales, excluding acquisitions, decreased 0.1% for the quarter.
“Second quarter results fell short of our expectations, as harsh winter weather conditions limited customers available work days. The year-to-year temperature declines, particularly throughout the Midwest, Ohio Valley and South, produced one of the most significant temperature drops in the past several decades,” said Paul Isabella, president and CEO of Beacon Roofing.
“The cold weather, combined with heavier February precipitation and March snowstorms, created a difficult environment for the roofing industry,” he added.
Regardless of the weather impact, during a traditionally tough season for roofing sales, Beacon was able maintain flat organic sales year over year for the quarter. Organic sales were bolstered by strong volume from hurricane impacted areas and company efforts in passing through manufacturer price increases, Isabella said.
Beacon Roofing Supply operates 563 branches throughout 50 states in the U.S. and Canada.
At the start of 2018, Beacon finalized its acquisition of Allied Building Materials in a $2.62 billion cash deal.
For the first half of 2018, the Herndon, Va.-based company reported a net loss of $5.1 million, falling from net earnings of $11.1 million in the first 6 months of 2017.
The losses occurred despite Beacon Roofing reporting second quarter sales of $1.43 billion – a company record and a 64% increase from sales of $871 million for the second quarter a year ago. For the first 6 months of 2018, Beacon reported sales of $2.55 billion, a 36% increase from sales of $1.87 billion for the first half of 2017.
During the second quarter, residential roofing product sales increased 19.7%, non-residential roofing product sales increased 35.6% and complementary product sales increased 263.2% over the prior year. But existing markets sales, excluding acquisitions, decreased 0.1% for the quarter.
“Second quarter results fell short of our expectations, as harsh winter weather conditions limited customers available work days. The year-to-year temperature declines, particularly throughout the Midwest, Ohio Valley and South, produced one of the most significant temperature drops in the past several decades,” said Paul Isabella, president and CEO of Beacon Roofing.
“The cold weather, combined with heavier February precipitation and March snowstorms, created a difficult environment for the roofing industry,” he added.
Regardless of the weather impact, during a traditionally tough season for roofing sales, Beacon was able maintain flat organic sales year over year for the quarter. Organic sales were bolstered by strong volume from hurricane impacted areas and company efforts in passing through manufacturer price increases, Isabella said.
Beacon Roofing Supply operates 563 branches throughout 50 states in the U.S. and Canada.
At the start of 2018, Beacon finalized its acquisition of Allied Building Materials in a $2.62 billion cash deal.